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What is GST- Goods, Services and Tax

GST Tax

*The Goods and Services Tax is a unified, destination-based tax that was implemented in India from July 1, 2017 to effectively replace all the existing indirect taxes, including service tax.

*The GST has directly affected the businesses involved in the selling/buying of good and services, as well as consumers, in the country.

*Whereas the prices of some goods/services have gone down, some other facilities have become costlier. The impacts of GST are being noticed as we move forward into this new tax era.

Advantages:

*GST is expected to build a more transparent and corruption-free tax system in India.

*Inflation is expected to stay under control after the implementation of GST

*Since it is a destination-based tax, the tax will only be paid by the consumer upon delivery of goods/services.

Disadvantages:

*The implementation of GST in India has created troubles for some sectors by increasing the cost of manufacturing and/or supply or by reducing the value of the product.

*Many businesses, especially small businesses, and startups do not usually have the money or tech resources to get compliant with the digital GST system.

*The tax will be paid by the end consumer, which makes it a non-consumer-friendly tax system.

 Conclusion:

The GST has both its pros and cons, and it is expected to bring a positive change in the tax system of India.