GST, i.e. Goods and Service Tax is a change that Congress government wanted to bring in the Indian economy. But the BJP government finally brought this change in Indian economy on July 1, 2017. After the major decision of demonetization, the BJP government has announced its other decision of adopting this new tax scheme. Some sectors of our Indian industry were still recovering from the impact of demonetization, then suddenly they got another shock of GST. Some sectors believed it to be a good step but most of the sectors were annoyed by the regulation of GST.
What is GST?
The Goods and Services Tax is a value added tax levied on most of the goods and services sold for domestic consumption. The GST is to be paid by the customers but it is remitted to the government by the businesses selling the goods and services. It will replace all indirect taxes levied on goods and services by Central and State governments of India.
With the effect of GST the work which was earlier recorded in an informal manner is now being recorded in a proper format. There is software like Tally, which is now available in the market with the GST option in it.
Impact of GST on different sectors is different. There are sectors which doesn’t get affected much but at the same time there are industries too, which are not happy with its implementation.
Industries like real estate, automobiles, and textile got affected in different ways. GST on automobile industry got mixed reactions. If we see small vehicles, their cost, to an extent, got lessened. Elimination of cascading effect and offset of input tax credit in the value chain has reduced the cost. In the real estate agency, sale or transfer of immovable property is outside the purview of GST.
However, procurement of materials for civil construction will be in its ambit. In pharmaceutical agencies and transportation industry, GST has not affected much. But if we talk about the textile industry, the situation is bad. Tax on cotton has raged the anger of the textile industry owners. In fact, in Surat many industrialists protested against this. In Delhi also, the situation at some areas was same. For a common man the items like two wheeler vehicles, SUVs and luxury cars, dining in restaurants, televisions, stoves, and movie tickets got cheaper. Whereas, things like mobile bills, school fees, health care, courier services, aerated drinks, cigarettes and tobacco products got expensive.
Also Read :- GST : A Boon or Bane for the?
GST is a good initiative because it is a transparent tax and also reduces the number of indirect taxes. It will also help to build a transparent and corruption free tax system. It has benefited people as prices will come down which in turn help companies, as consumption will increase.
It is correct to say that if a new wave of change arrives, people will initially protest because they do not want change in their system. But after knowing the benefits of that thing, they adopt that.
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