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GST – Its Prospects and Impact on Indian Economy

Dr. Harapriya Patnaik Reader in Economics Khemundi College, Digapahandi. GST – Its Prospects and Impact on Indian Economy.

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GST – Its Prospects and Impact on Indian Economy

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  1. Dr. Harapriya Patnaik Reader in Economics Khemundi College, Digapahandi GST – Its Prospects and Impact on Indian Economy Taxation is centuries old phenomena, the first known system of taxation is in Egyptian kingdom in 3000 BC-2800 BC during the period of Augustus Ceaser, the first Roman Emperor,he told that the entire world must be taxed.

  2. GST has been introduced in the nation from 1st April 2017, and implemented on 1st July 2017 but it was necessary to introduce to get rid of all the flaws prevail in the indirect taxation. The implementation of GST is one of the biggest achievements of the Government more than 150 nations has already introduce it. • The Indian GST has three components viz • 1. Central Goods and Services Tax (CGST) • 2. State Goods and Services Tax (SGST) • 3. Inter State Goods and Services Tax (IGST)

  3. Aims of GST • The basic objective of GST is to facilitate the creation of “one Nation, one Tax, One Market”. • This would positively affect the key Sector of the Economy. • GST is aimed at the greater for formalization of the Economy • GST was implemented to improve tax compliance of the tax payers

  4. It should increase the revenue collection of the government • GST is expected to make easy of doing business • GST is to ensure that of mass consumption and essential commodities remain at an affordable level. • It is Economically efficient and neutral in its application • GST is distributionally attractive and simple administer

  5. Let us see how GST has impact on day to day goods. Foot wear and Garments Cab and taxi ride Train fare Airline tickets Hotel Stay Movie tickets Buying property

  6. Education and medical facility • Buying a car • Mobile bills Jewellery • Restaurant Bills • DTH and cable services • IPL and other related events • Amusement Parks

  7. There are some items which are completely exempt from the GST regime 1.Unprocessed cereals, rice and wheat etc 2.The unprocessed milk, vegetables, fish, meat etc 3.Unbranded Atta Besan and Maida 4.Kids colouring books and drawing books

  8. Benefits of GST to Indian Economy • Removal of different types of taxes such as VAT, CST, Service tax, CAD, SAD and excise duty • Removal of cascading effects of taxes example remove tax on tax. • Price of the consumer goods reduced by reducing the cost of production of consumer goods • Lower the burden of common man. Public will pay less money for the product which they pay higher before. • Boost to the Indian Economy in the long Run • Controls the Black Money circulation • Increase the demand of the consumer for different goods.

  9. There will be more transparency in the tax system. The customers know exactly the amount of tax payment • GST will add to the government revenue by extending the tax base • GST will remove the custom duties applicable on exports. Competitiveness arises in foreign market • Controls the Black Money circulation • Increase the demand of the consumer for different goods. • There will be more transparency in the tax system. The customers know exactly the amount of tax payment.

  10. The single tax system eliminate the road block example check post, Toll plaza etc • There will be more transparency in the tax system. The customers know exactly the amount of tax payment. • Reduction in multiplicity of taxes will also lead to confidence and building confidence of foreign investors and giving a boost to foreign direct investment (FDI in the country)

  11. I would like to conclude that there are some of the major challenges before the Government and industries ahead of the actual implementation of GST. GST has an important role to play in easing supplying bottlenecks. The Government have to revise the recommendations of the high empowered committee as ell as the recommendations of the committee of state Chief ministers. Conclusion

  12. GST offers valuable benefits to achieve productivity and competitiveness to Indian business in the International Market. GST is very much successful in more tan 150 countries. It is imperative to understand the significance of GST. Entrepreneurs, the tax payers expect the GST to be neutral. Tax events shall be simple, efficient and uniform. The Industry and Business along with the consumers will be benefitted

  13. THANK YOU

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