When we turn the pages of our history, we realised that the core of our sufferings was only because of our discordance and disunity. Gracefully, the vision of “New India” is based on the ideology of One Nation- One Plan. So, Goods and Service Tax (GST) is rooted as “One Nation- One Tax” and is considered one of the greatest economic reforms for its simplicity in taxes and transparency.
Established under 101st Amendment Act, it was launched on July 1st, 2017 by Ex-president Pranab Mukherjee and prime-minister Narendra Modi. GST is the incarnated form of all indirect taxes levied on the manufacture, sale and consumption of goods and services throughout India.
GST is well-divided between the centre and states in the forms of C-GST, S-GST and Integrated GST laws. Principle designed as a final destination point; it avoids cascading effect of tax on tax which increases the tax burden on the end consumer. Its major advantages can be listed as-
- Reduction of complications in tax administration.
- improve competitiveness for the trade.
- Help to build a transparent corruption-free tax administration.
However, there have been several dark clouds as well. Because of its vulnerable and multiple tax rates, it makes a market more fluctuating and confusing. According to some economists, GST in India would harm the real estate market. However, making of Indian economy’s growth rate slow is the largest blur on GST.
So, the greatest challenge front of GST is to recover the tag of the world’s fastest-growing economy which hopefully will happen soon as the government has burnt the midnight oil to make it happen again.
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