GST: ITS CAUSE AND EFFECTS

This topic is about GST and its cause and effects. How GST helps in our day to day today life activity and what its cause and effects. GST stands for goods and service tax; it is an indirect tax which effects all the sectors and sections of our economy. The Goods and Service Tax (GST), Implemented on July1, 2017, is regarded as a major taxation reforms till date implemented in India since independence in 1947. GST was planned to be implemented in April 2010, but was postponed due to political issues and conflicting interest of stakeholders. The primary objective behind development of GST is to subsume all sorts of indirect taxes in India liked central excise tax, VAT/Sales Tax, service tax, etc. and implemented one taxation system in India. The GST based taxation system brings more transparency in taxation system and increases GDP rate from 1%to 2% and reduces tax theft and corruption in country. It is ideal to note that both sides of coins (pros and cons) need to be taken in account. Impact of GST on society should studied carefully. The impacts are positive and negative. Positive impact are : Simplified tax structure, Support for small and medium enterprises, More funds for production, Enchanced operations throughout India and Increased volume of export. Negative impacts are: Negative impact on common man, negative impact on the real estate Market and GST on unemployment. This paper focuses o the cause and effects, positive and negative sides and impact of GST on Indian economy.