Page 35 - Banking Finance July 2017

ARTICLE

GOODS &

SERVICE TAX

(GST)

BENEFITS

I n the last issue we have discussed about the special Central Board of Indirect Taxes & Customs (CBIC) in the GST

regime.
features of GST Law. In this issue we will discuss in brief
about benefits and common problems in the ensuing
As per various announcements made by CBEC, GST laws are
GST Regime.
framed to provide lots of benefits to various stakeholders
As perceived from various announcements and circulars of including common Citizens (consumers) , businessmen
CBEC, GST law is going to bring in the biggest indirect tax (trade, commerce & industry) and the Governments
reform after independence of India with enormous change (Central and states). As announced by CBEC, GST is a win-
in the Indirect Tax system in the country. It is going to win situation for the entire country. Expectedly GST will
change demographics of each state with the increased con- lower the cost of goods/ services give a boost to the
sumption-based tax system the destination state is going to economy and make the Indian products and services globally
get the tax. The Central Board of Excise & Customs (CBEC) competitive.
governing and supervising GST laws is being renamed as the
GST aims at making India a common market with common
About the author tax rates and procedures and removing the economic bar-
riers for an integrated economy at the national level. By
subsuming or including most of the Central and State taxes
CA. R C Guria
into a single tax and by allowing a set-off of priorstage taxes
M.Com, FCA, FIII for the transactions across the entire value chain, it would
R. C. Guria & Associates
Chartered Accountants mitigate the adverse effects of cascading and improve com-
petitiveness and also improve liquidity of all types of busi-
nesses - trading, distribution, manufacture etc.

BANKING FINANCE | JULY | 2017 | 35

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