The beginning of a similar tax system (GST- Goods and Services Tax) across the country is ready to be registered in the history of Indian Economics. Will this decision prove a turning point for the country’s economy?
In response to this question, the central government and many economists from around the world have been claiming from time to time that this will improve the business environment in the country. This is because this decision will prove to be a milestone in the direction of Isle of Doing Business. At the same time, this decision will see many significant changes in the economic activities of the country, which will have a direct bearing on growth.
Why is GST so important?
GST is going to change the tax system of the country. This change will make the government easy to recover tax from the business. There will be a rein on tax evasion. GST will be fully dependent on Information Technology (IT). In view of this, the government will have the account of the pie-pie of the business in the country. At the same time, government will be able to see big cuts in the cost of tax collection and taxation. With all these changes, the highest revenue from the state’s largest income stream, including the CenterThe way will be clear.
The way of business will change
With the implementation of GST, the whole country will become a market. The industries engaged in any corner of the country will be able to get rid of dozens of different types of business tax when crossing the states limits. He will get the same tax rate in his business in the entire country and in addition, there will be a great reduction in the cost of doing tax affairs in the business. This whole work will be done in an automated way through digital media.
The more business you earn
During the last 70 years, only half a dozen states of the country are in such a state where the government earns huge revenue from business tax. Important among these are Maharashtra, Gujarat, Tamil Nadu etc. These states are at the forefront of industrial activity. Obviously the governments of these states have tax income more and the resources of doing business there are better than the rest of the states. After GST is implemented, the benefits will be not only in the state where industrial activity is high but also the state where consumption
is more. In this case, after the implementation of GST, new industrial zones will be built in any corner of the country and the possibility of business growth in all states will increase.
In such a situation, it is obvious that the increase in the taxation of the government will make the task of mobilizing business growth in the country easier. The way for foreign investment is expected to be cleared by the integrated and simplified tax system. For these reasons, the central government and economic experts claim that the country’s growth rate is set to accelerate.