Goods and Service Tax in India: Here are the 10 Benefits of the GST Bill
https://www.mycorporation.in
In a historic development, the Rajya Sabha passed the constitutional
amendment paving the way for the Goods & Services Tax (GST). The GST Council on Saturday fixed a 5 per cent tax rate on small hotels and restaurants and approved draft of key supporting legislation's to enable roll out of the new indirect tax regime from July 1 2017. The reform is expected to bump up GDP by about a percentage point or even more. Here's a look at GST's Benefits:
https://www.mycorporation.in
1. Life Gets Simpler GST will replace 17 indirect tax levies and compliance costs will fall.
https://www.mycorporation.in
2. Revenue Will Get a Boost 1. Evasion set to drop. 2. Input tax credit will encourage suppliers to pay taxes.
3. States and Centre will have dual oversight. 4. The number of tax exempt goods will decline. https://www.mycorporation.in
“
3. A Common Market It's currently fragmented along state lines, pushing costs up 20-30%.
https://www.mycorporation.in
Call or Whatsapp us: +91-888-210-1000
4. Logistics, Inventory Costs will Fall Checks at state borders slow movement of trucks. In India, they travel 280 km a day compared with 800 km in the US.
https://www.mycorporation.in
“
5. Investment Boost For many capital goods, input tax credit is not available. Full input tax credit under GST will mean a 12-14% drop in the cost of capital goods. Expected: A 6% rise in capital goods investment, 2% overall. https://www.mycorporation.in
Call or Whatsapp us: +91-888-210-1000
6. Make in India Manufacturing will get more competitive as GST addresses cascading of tax, inter-state tax, high logistics costs and fragmented market. Increased protection from imports as GST provides for appropriate countervailing duty.
https://www.mycorporation.in
“
7. Less Developed States Get a Lift The current 2% inter-state levy means production is kept within a state. Under the GST national market, this can be dispersed, creating opportunities for others.
https://www.mycorporation.in
Call or Whatsapp us: +91-888-210-1000
8. Manufactured Goods Could Become Cheaper Lower logistics and tax costs.
https://www.mycorporation.in
“
9. GDP Lift HSBC estimates an 80 basis point rise in GDP growth over 3-5 years. NCAER pegs this at 0.91.7% thanks to the elimination of tax cascading.
https://www.mycorporation.in
Call or Whatsapp us: +91-888-210-1000
10. Freeing up Online State restrictions and levies have complicated ecommerce. Some sellers do not even ship to particular states. All this will end with GST.
https://www.mycorporation.in
Thanks For Reading! Any Questions ..Ask our Expert? You can Call or Whatsapp: +91-888-210-1000 Mail us: info@mycorporation.in Visit us anytime: https://www.mycorporation.in