To goods such as cars. Thus in this way

To say, GST is Boon or Bane, we should first look into
final output of GST. GST act as revolutionise step in tax
reforms, which changes the concept of tax collection. The reform or revolution process of indirect tax was
started in 1986 by VISHWANATH PRATAP SINGH with the introduction of modified
Value Added Tax (MODVAT).In 1999, Prime minister ATAL BHARI VAJPAYEE & his
advisory panel which includes former RBI Governor, IG Patel, Bimal Jalan and C
Rangarajan . Vajpayee set up a committee to design GST Model to subsume all the
indirect tax. In 2002, Government appointed a task force headed by Doctor Vijay
Kelkar. After that this revolution step taken forward by BJP government which
approved GST council formation on 12 Sept 2016. It is setup under 279(A) of the
constitution amendment, its main function are drafting of GST rules , method of
registration, tax payment and return refund and invoice and implementation or
timetable of GST .Council formed four slabs (5%,12%,18% and 28%) under which
items were put under specific slabs and according to that consumer has to pay
respective tax in addition to that there is category of exempted goods and
further cess is levied on luxury goods such as cars. Thus in this way 1211
items were put under the slabs in 14th meeting of GST council which
was held at Srinagar.GST council with the help of CBEC(Now CBIC) formulates
polices ,makes GST law procedure of and  does audit or assessment and Anti-evasion
works. To decide GST to be boon or bane , I would like to discuss what is the
need to come up with GST, there are two possibility for sell of Good that  Goods are sell in same state, then there will
be VAT on this and if Goods are sale in other state, then there will be central
sale tax. To see the problem with GST , take an example ‘A’ want to enter into
a textile industry .so he sell raw clothes at worth of rupees 1000 to ‘B’ &
Govt. had laid down 10%sales tax . So, ‘B’ has to give rupees 100 to government
as a sales tax ,after that when ‘B’ Sales these clothes ,he estimate the price
by adding both(1000+100(tax which he pays )+500(as a profit)).so, total amount
will become 1600 ,but the customer will buy it at rupees 1760 ,the additional
160 charge is also a sale tax .If we differentiate 160 into 100(tax on initial
1000 rupees)+10(tax on 100,which’B’ already paid it as a tax )+50(tax on profit
500 rupees).so, here we see the tax on 100 rupees ,which already paid by ‘B’ as
tax which cascading effect. To avoid cascading effect .seller not made bills,
they sale their product without bill by that problem of bribery &black
money arises, to tackle these all problem Government introduce VAT. But VAT has
also loophole It be easily understand by example, ‘A’ seller sell his raw
product at 1000 rupees to ‘B’, so there is rupees 100 or 10% tax imposed by
state government upon this product then this ‘B’ sell this product at
1000+500(profit) but he does not include those 100 rupees which is from tax in
place of this he will get INPUT CREDIT from customer. To tackle the cascading
effect Government introduced VAT(In this tax goes into input credit) but VAT
has some problems also listed below: –

1>Every state Govt. have different VAT Rate. A
consumer want to buy a car ( A is from Bihar ) and Bihar has 14% VAT where as
in Gujarat 12% VAT , so consumer will buy car from Gujarat instead of Bihar
.This is also called as Rate Arbitrage

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2>The another problem is that , if you want to sale
product in Bihar then VAT will imposed on it , if it is for transport from one
city to other city then VAT is not imposed on it .So, big businessman to avoid
taxes build their plant in respective state,Which is one of the causes of black

4>Electricity is not included in input credit .advertisement
hoarding is not included .fuels is also not included.

GST makes easy compliance: therefore, all tax payer
service like registration, returns, payments, etc. would be available to the
taxpayers online, which would make compliance easy and transparent. Uniformity
of tax rates and structure, Indirect tax rates and structure would be uniform
across the country, thereby increasing certainty and ease of doing business in
the country tax neutral, irrespective of the choice of place of doing business
.Improved competitiveness:-Reduction in transaction costs of doing business
would eventually lead to an improved competitiveness for the trade and
industry. Gain to manufacturer and exporters, Reduction in manufacturing cost
increases competitiveness of our exports globally. Removal of cascading effect,
No multiple taxes on same goods, this would reduce hidden costs of doing
business. Simple and easy to administer, better control on leakage of
information and data. So, in my point of view if we see in long term it has
more advantage rather losses, it will reduces corruption and tax evasion and
make all citizen under taxpaying unit and will make easy procedure which may
attract foreign investor which cause rise in FDI which ultimately generate employment,
increase GDP and it may help in to reduces all indirect problem. So, for long
term I would consider it BOON for Indian economy but in short I would like to
end my essay with quote “Zindagi Jeena Aasan Nahi Hota Bina Sangharsh Ke Koi
Mahaan Nahi Hota, Jab Tak Na Pade Hathode Ki Chot, Pathar Bhi Bhagwaan Nahi
Hota” .


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