2. Goods & Services Tax Bill
(GST)
The Goods and Service Tax Bill or GST Bill,
officially known as "The Constitution (122nd
Amendment) Bill, 2014", would be a Value added
Tax (VAT) to be implemented in India, from April
2017. GST stands for "Goods and Services Tax", and
is proposed to be a comprehensive indirect tax levy
on manufacture, sale and consumption of goods as
well as services at the national level. It will replace
all indirect taxes levied on goods and services by
the Indian Central and State governments. It is
aimed at being comprehensive for most goods and
services.
3. COmMON Benefits of GST BILL
Decline in number of tax exempted
goods. Input tax credit will
encourage suppliers topay taxes
Investment in capital goods
is expcted by a 6% increase
and overall investment by
2%.
Helps to promote
manufacturers at
a large scale.
GDP is expected
to increase by 1.5-
2%
Increase in
investment, GDP has
an impact on Rupee
value
4. Manufacturing
Sector
Taxes will be
collected at
point of sale
Export of goods
at zero rate
Reduced cost
of production
Services
Sector
Sectors like
Logistics,
retailers, hotels
are benefited
Frequency of
transactions is
increased
Dealers
benefited by a
common
market
Consumers
Availability of
products at low
price
Simpler Tax
systems
Quality
products from
other states
BENEFITS OF GST Bill
5. Reduced cost of
production, increase in
consumption helps to
increase output produced.
Availability of
goods at a
cheaper price
, increase in
consumption
More number of
transactions,
increase in flow
of services
Service
SectorCustomers
Manufacturing
Sector
6. BENEFITS OF GST BILL
Customers
get to know
about tax
system in
detail.
Problem of
hidden tax for
retailers is no
longer
available.
Reduction in tax
cascading lead
to lower cost of
production
8. COMMON
MARKET
Wide range
of services
are dealt
Goods sold
throughout
the country
Quality
products
from other
parts of
state
E-
COMMERCE
Goods are
transported
cheaply and
easily without
any hazard
Products
from all state
made
available
MANUFACTURERS
CUSTOMERS
NoCST& Entry
Tax
Services Sector
9. CONCLUSION
The GST bill implementation has several
benefits to the manufacturing sector,
service sector and the consumers. But
manufacturing sector has more benefit
than the other two, comparatively.