8 things to know about the GST Bill in India

The Goods and Services Tax (GST) is the biggest game-changer in the paradigm of India’s indirect tax structure since the economy opened up some 25 years ago.

 The GST in India is said to be an answer to many financial problems. The Goods and Services tax or what is more commonly referred to as the GST is expected to replace the indirect taxes which are levied by the State and the Central Governments and provides a much more streamlined alternative.
Business owners will also find India as a unified market who want to bring a lot of black money right into the mainstream economy. The tax is supposed to be implemented at every step of value creation.
Our previous tax structure had a value added tax structure on both the state and central levels. VATs cover only sales and sellers and is not allowed to claim the credit against VAT which is paid on earlier purchases.

It does exclude a number of other taxes which covers luxury and entertainment tax within the states. Once the goods and service tax is implemented it would mean a cascading sequence of tax credits. At each stage, the seller would be able to set off his taxes. Thankfully, the consumer, at the end of the line, having to bear the cascading effect of the taxes till now, would only have to bear the taxes levied by the last dealer.

Here are the eight things to bear in mind about the GST Bill in India,

•    The GST is an indirect taxation where most of the current taxes are merged into a single taxation system.
•    Now that the the GST Bill is passed, it will allow both the Centre and the states to charge an indirect tax on the several things like the manufacture, sale, and the consumption of goods and services across the country.
•    Saying it in a nutshell, the GST would bring together all taxes in one basket all levied by state and Central government and unify them into a single-tax sturture thus eliminating the system of multiple taxations and also promote the concept of one nation, one tax.
•    The GST is governed by the GST Council which is governed by the Finance Minister. The finance mister Mr. Arun Jaitley's says that once all taxes are removed and the cascading effect of the taxes is removed, the prices of goods will also come down substantially.
•     A smooth GST rollout is a challenge in itself, as it needs a coordination between the states and the Centre to ensure that there are uniform tax rates for all goods and services.
•    The GST council has put forward a system of a four-tier uniform tax slab of 5, 12, 18 and 28 per cent on goods and services, along with an additional cess on demerit goods which includes tobacco products, luxury cars, and aerated drinks.
•    The Food items which have been kept in the zero-per cent slab is not expected to attract any extra taxes. As of now, the petroleum products too which are under the GST will also remain in zero tax slab.
•    With the GST being levied there are many taxes which will be subsumed such as, Centre-level taxes which includes the Sales Tax, Excise Duty, and the state-level taxes like the luxury tax, the Value-added Tax (VAT), Entertainment Tax and so on.
Thus, the above important points on the GST proves that it is one indirect tax for the entire nation, which will ensure that India remains, one unified common market.

How will the GST impact Indian capital markets?

Not many radical economic changes have impacted the Indian Economy as much as the Good and Services tax(GST) since 1947. and it plays an important role in the economy of India. GST is levied on the manufacture, sale and also the expenditure of goods and services

 The chief purpose of GST is to unify indirect taxes and create a common market. The Finance Minister of the country, Arun Jaitley says that the GST bill will revolutionize the economy of India and helps in the economic integration of India. Thus the GST also is a way to make the cumbersome tax process uniform, which is levied on goods and services across the country.

Certain Facts of GST which you should know about

Currently, the tax scenario is like this, there are multiple indirect taxes which are levied on goods and services which are a deterrent to the growth of India’s economy. 

There is not one but numerous taxes in the forms of CST, Entry tax, VAT, Excise duty, Entertainment tax, Customs duty and Stamp duty and any other have divided the Indian market. This scenario means that introduction of GST will result in economic growth. 

GST is sure to impact positively on the Indian economy. Some of the sectors of the Indian economy are more impacted upon in comparison to another sector under GST.

After the GST implementation, it has removed all the indirect taxes and formed a single common market which results in an efficiency of supply chain and an economy of scale in production It can also give leeway to improved trade and commerce.

GST will also do away with the rapid effect of taxes rooted in the cost of production of products or services and will provide the required credit throughout the value sequence. 

This will particularly minimize the expense of natural products and will raise the importance of the ‘Make in India’. The long value sequence can be found in basic products to final consumption stage with functions distributed in different states which include the FMCG, consumer resilient, pharmaceutical, vehicles and also technological innovation products which are the ones which will bear the major brunt of the GST application. 

GST will help the business to flourish in India. The expense of tax conformity and deal price will be substantially resolved with the transformation of current several taxations into single GST. So you get a tax program which is stable, clear and definitely foreseeable, it will draw both local and foreign investors in droves to India and this also means lucrative job opportunities.

Goods and services tax (GST) has started being implemented from July 1.

There are certain expectations from this tax reform that it will boost the Indian economy and a major shift will be seen from unorganized to organized sector.

However, you would expect to experience near term hiccups for the next one or two-quarters.

According to a few market experts, job creations may prove to be a problem.

Whatever the consequence the GST is said to create a major economic transformation, the effect of which will spread far and wide.