Will GST be a game changer?

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There is lot of news and buzz about GST,goods and Services Tax. What impact will it make to economy, Jobs and for people as a whole ?

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Posted by Jay
Asked on 2017-04-18 11:09 pm
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Yes, GST is going to give a boost to the Indian economy. An article on vccircle.com, Impact of GST on Indian Economy, says:
“Removal of tax barriers on introduction of uniform GST across the country with seamless credit will make India a common market leading to economy of scale in production and efficiency in supply chain.
GST will remove cascading effect of taxes imbedded in cost of production of goods and services and will provide seamless credit throughout value chain. This will significantly reduce cost of indigenous goods and will promote ‘Make in India’.
Integration of existing multiple taxes into single GST will significantly reduce cost of tax compliance and transaction cost.
Electronic processing of tax returns, refunds and tax payments through ‘GSTNET’ without human intervention, will reduce corruption and tax evasion.
GST will eliminate the scope of double taxation in certain sectors due to tax dispute on whether a particular transaction is for supply of goods or provision of service such as licensing of intellectual properties like patents and copyrights, software, e-commerce and leasing.”

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Posted by Gunjan (Questions: 2, Answers: 126)
Answered on 2017-05-04 4:55 pm
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GST will be a game changing reform for the Indian economy as it will create a common Indian market, reducing the cascading effect of tax on the cost of goods and services. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. GST will have a far-reaching impact on almost all the aspects of the business operations in the country, for instance, pricing of products and services, supply chain optimization, IT, accounting, and tax compliance systems.
In terms of growth, price, current account deficit and budget balance, the macroeconomic impact due to the introduction of GST will be significant. A short lived limited price impact is expected in the form of inflation with the introduction of GST. However, a larger impact is expected on the administrative compliance cost of GST which is likely to increase tax revenue thus reducing fiscal deficit.

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Posted by Sanjna (Questions: 3, Answers: 1)
Answered on 2017-04-23 9:46 am
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