GST- A Boon or a Bane
GST (Goods and Services Tax)is basically an upcoming taxation system in India which will merge central and state government taxes -from the process of manufacturing to reaching the product to the consumer. The main idea behind GST is to levies the taxes on the product at the time of consumption rather than production.
What is the Problem?
Some goods have to be first manufactured and then are consumed by the consumers. Therefore, here the government puts up its indirect tax i.e., central excise tax at the factory gate.
Subsequently, when the product reaches the factory outlet another tax awaits on your way which is the consumption dubbed value added tax (VAT).
So, we have a tax at the factory gate which adds to the cost of the product and another tax at the final price which serves as a cherry on the cake.
How will GST Help Consumers?
Customers would benefit in the following two ways -
Firstly, with the execution of GST, customers will not have to pay double taxation on the same product. There will be increased competition.
Secondly, all the taxes will be evaluated at the time of consumption, which means that if a jeans is taxed 20% it will include both central and state government taxes together. This would further lead to transparency and reduction in redundancy and duplication.
Impact of GST on Tourism Sector
GST is surely going to affect the hospitality industry at first which forms a very big part of the tourism industry but, is well designed for the long run. It will be turned into single taxation system, thus, reducing the flow of tax, incorporating flexibility and benefitting travelers.
Impact on Consumers
As the duplication and redundancy of taxes will be eluded, the prices will fall back to their original positions. Thus, GST is more of a boon than bane for the Indian consumers.
About the blogger
Trisha is currently pursuing her Bachelor’s in Journalism and Mass Communication from GGSIP University. She currently has her own YouTube channel named ‘The Fact Finders’ and her own Blog ‘Badalte Rishte’. She has been associated with MTV for the past one year as a campus ambassador. Trisha is a hard working person and loves to write, sing, paint and communicate with people.