Last updated on November 10th, 2019 at 11:53 am
In India prior to GST implementation numerous indirect taxes exists. GST has replaced al of thee redundant nd recurring indirect taxes and becomes a single tax system which is implemented indirectly. GST implemented on first July 2017 and prior to it was passed from parliament on 29th March 2017. It is a value addition tax which aims to increase utility of tax system and unified it so that it will be beneficial both to customers as well as companies.
This tax is levied on supply chain management of goods and services. It unifies all of these taxation system into one single unit and then it aims to provide multiple level of management so as to reduce the number of tax buder and in this way, it decreases the tax levied and provide faster movement of products in supply chain management.
Prior to GST the taxes levied on products becomes high an on single products there are instances of two VAT such as during buying of raw materials and warehousing of products. IN this way, unnecessarily the rice of products go to an astronomical units and in this way inside product range the price increases to multiple times.
With GST taxes levies at each point of sale not each point of manufacturing and in this way, the tax systems became unified and it comes to one single unit and in this way customers find it easier to access it and the price front of the prodics reduced to bare minimal leles and as we see we experience vast decrease of costs with it.
GST is levied on the products s and when there is addition of monetary values and irrespective of stages as when the supplier buys maida and sugar and add to make biscuit and this means here is the value addition so that there is levy of GST and in this ay , tax is levied upon actual value addition instead of each and every points to make it more transparent and removes obstacles of red tapism in each and every stage of product compositions.
According to it as and when in which destination the product is consumed or being used then the entire tax revenue will go to that state instead of the state that is manufacturing the product. As we do see the state which buys the product which means is providing value addition and that means the tax is levied from that and go to that state. In this ay, actual use of the products ad the residing state gets the actual product value of GST.
At first in this matter the opposition parties make the hue crya over it but it always the sraight forward idea the people from which state is buying the product then the taxes collected from GST goes to that state and in this ay, the state in whcih we are residing get the maximum value of it and instead can use that find to utilise benefits of people in the longer ranges.
It makes easiercorporates and organisations to file tax system online and in this ay, any third party benefitaro removes and the red tapisms and other facts of organisational tax systems removes completely. In thi way, a complete transparency of tax systems and its benefits come into the fore and that makes the entire taxatio system a clean financial system all over entire nation. It stops multiple checks and balances while logisitics of products and in this ay logitics ecomes faster and it reaches to different destiantions within shortest possible of time.
Many unorganised sector also comes into taxation system as they many a times do not participate in it and that makes the reduction of revenues to government and with it comes the faster movement and deeper integration of each and every segment of government without a doubt.