India has finally passed the Constitutional Amendment Bill paving way for the long-pending goods & services tax bill. It will replace 14 older indirect taxes and is expected to boost tax revenue (Research: Saloni Kamboj & Saurabh Goenka)
The one GST will replace 15 different central and state taxes. Broken down--that means you will now pay the same amount of tax each time you walk into a restaurant--no matter where in the country it might be.
The current system of taxation leads to double taxation. VAT is a state tax and Excise duty is a central tax. Due to this difference, currently, we pay VAT on goods for prices inclusive of Excise duty.GST will correct that.
The 15 older taxes also had different rates in different states. The uniform GST will streamline that. (WION)
GST will replace 14 different state and central taxes. (WION)
The implementation of GST has led to an increase in tax revenue in anumber of countries. That should mean the government will have moremoney to spend on infrastructure, public health and education, and ofcourse India's much-touted 'development'. (WION)
GST is expected to boost India's GDP by as much as 0.9-1.7% in the long run. (WION)
Cars and fast-moving consumer goods (FMCGs) are expected to become cheaper. Telecom, pharma, and hotels are expected to become more expensive.