Impact of GST on Indian economy
GST that is goods and services tax is the biggest indirect tax reform of india. GST is the single on the supply of goods and services. It is a destination based tax. It has replaced all other taxes like VAT, entry tax, central and excise duty and service tax law. It has been implemented in India on July 1, 2017. It is of four types-
1. State GST
2. Central GST
3. Integrated GST
4. Union territory GST
It has advantages which are as follows:-
1. It is a transparent tax and also reduces number of indirect taxes.
2. It will help in building a corruption free tax system.
Cons of GST
1. It's impact on the real state market is negative. And the cost of new homes would add up to the 8% and hence, demand will reduce.
2. According to some economists it is nothing but new names for central and excise tax, VAT and CST. There is no major reduction in tax layers.
3. Clothes and garments have become more expensive.
short term impacts of GST are it has increased prices of various commodities and demands have tend to fall because of this and the prices have increased because now the the sellers have to pay more in the form of tax so as recover that money from the people they increased the goods prices.
Long- term impact of GST
Long -term impacts include that the taxes are not less in layers and it has not reduced but it just that the new names were given to it. The prices will continue to rise as a result of this. People also face problem in shifting to this kind tax that seems so unfamiliar to the people.