Page 76 - LECTURETTE TOPICS eBOOK

shop.ssbcrack.com

accustomed to the new tax structure. Will our hopes for the brighter economy really
come to surface or still there’s an uncertainty? Well, that thoroughly depends on how
our government makes GST turn out to be a good and simple taxpaying system. A
lot of GST billing software has already surged in the market which enables easy and
seamless bookkeeping. Even, it seems to be promising enough to hinder the growth
of the parallel economy as it reduces the scope of revenue leakage. Now, let’s have
a look at how GST has impacted India, as of now.

GST Current Scenario – Short-Term Impact
GST Implementation in every business comes up with a cost of compliance. As
opposed to the actual reason of incorporating GST, the ground reality seems to be
a bit different. Owing to the increased cost of compliance, it prohibits the production
rate of small-scale manufacturers and it passively affects the increased cost of
goods. Most importantly, cost of some daily commodities have undergone steep rise,
whereas there has been a marginal increase in the cost of some daily consumables.
There has been quite a lot of protest from small-time traders and manufacturers, to
keep GST on hold as of now, as the current economic structure isn’t eligible enough
to induce GST.

Reasons why GST is good for everyone
To forecast the long-term benefits, it just doesn’t reduce the tax rates, but minimizes
the tax slabs as well. Currently, in India, there are 5 slabs with 3 rates- an integrated
rate, a central rate and a state rate. We can’t expect the shift as of now; although the
government has promised to revise the rates no sooner the ‘revenue neutral rate’
will be attained. But it’s just a verbal assurance. Now, keeping aside the factoids,
let’s focus on the facts which truly seem to be beneficial.

Quick Facts
• After some initial hassles, the manufacturing cost will decrease
substantially, owing to the lower burden of taxes and giveaway of credits
to the manufacturers. So, we can keep our fingers crossed and expect the
cost of daily consumables and commodity goods to decrease.

70 | P a g e shop.ssbcrack.com