The one change that India was eagerly looking forward to in 2017 was the implementation of the Goods and Services Bill. And, it seems like the days are not far away.
Lok Sabha cleared the last legislative hurdle by passing the bill in its session on Wednesday and soon enough, this law of uniform taxation will be up and running in the Indian economy.
For those who do not know about it, Goods and Services tax act would subsume all indirect taxes currently levied, including excise duties and service tax.
To break it further, we bring you positive impacts that this soon to be act would entail:
1. Uniform EconomyThis bill would promote a seamless economy and improve economic efficiency. This can help in minimizing the potholes in Indian supply chains and boost growth rates.
2. Cheaper Goods and ServicesAs taxes rise, the retail price of goods also rises, but when taxes are unified, the retail prices would fall. Great, isn't it?
3. Broader Tax BaseGST offers no exemption to any goods or services. Under this law, all goods and services are taxable, hence this increases tax base leading to a better growth graph of our country.
4. TransparencyNot only would GST keep a check on tax evasion with effective monitoring, it would also ensure in corruption free administration. There will be no hidden tax or cost that can be levied hence ensuring transparency.
5. Eliminates InefficienciesThe taxation burden will be divided equitably between manufacturing and services. It will remove the taxes on production and distribution and only the final output would be taxed.
Let's hope this bill helps our country in ways more than mentioned!