InvestorQ : what is the GST. why India using GST? what is the reason that some poor people are suffering from GST . why it is useful to us and how profit to us. how many goods are expancses in our India.
shaik latheef made post

what is the GST. why India using GST? what is the reason that some poor people are suffering from GST . why it is useful to us and how profit to us. how many goods are expancses in our India.

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sara Kunju answered.
2 years ago
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GST is an indirect goods and services tax, imposed in the supply of goods and services. It is basically multi-stage, destination-based tax. GST has subsumed almost all of the indirect taxes, except few.

The major question arises, why GST in India. So, there are many factors due to which GST has been introduced in India, majorly it was to make India a single tax economy. Also, it has removed the cascading effect on the sale of goods and services to a great extent. i.e., the final cost is reduced. The chaos of dealing with different tax departments has been majorly reduced.
GST has also facilitated easy, faster and better collection of taxes to the Indian Government. Though the government was unable to collect as much as targeted revenue, the collection has definitely increased. It has made collection between states and the central government a lot easier since the system is unified.

 There are always two aspects to anything. So, even if GST has eased a lot of pain, it has definitely made things a lot tougher for some specific people, section, industry, etc.
If I try to make a distinction, small vendors aren’t really enjoying the GST regime, as all they have is chaos and lots of chaos. Their turnover isn’t that huge, sometimes it doesn’t even exceed the prescribed limit for GST registration, still, they have to take registration because if they don’t know registered vendor supplies to them. Also, other medium and small vendors face issues like:

They have to install software for GST which is generally an expensive affair.
Claiming input under GST is sort of a mess, people always get stuck into the procedure.
Complying with all the GST procedures is a lengthy process and hence involves too much of time, which could have been used elsewhere to do other different tasks.

 If you see the impact, that is on many products, but the main products/services that would get majorly affected are:
Jewellery: You’re going to pay more for the jewellery as the tax rates on jewellery would be increased slightly, which would directly pass on to the customer.
Fuel: The fuel has been excluded from the parlance of GST, due to which excise duty is totally in the control of the government, so eventually it is going to surge.

You’re definitely going to pay more for a better lifestyle, as the tax rates on lifestyle products are one of the most crucial and easy to effect area, and hence tax rates are going to hike easily and frequently.
Sin products would become more expensive.

To conclude, GST is affecting the economy in a major way, and different people have a different outlook towards it, so the impact that matters is to the whole economy and not the one to an individual, or a particular sector.


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