After decades of tying itself up in political knots debating a transparent, simple, efficient, one-nation system, India will soon be on a clutter-free tax highway.
Around 6 million entities are expected to be covered under GSTand more than 10 tax rates are likely to fall. Here's a quick look at how GST will impact the economy, businesses and the consumer.
ECONOMY
* Dual monitoring by the Centre & states to reduce tax evasion
* Better compliance through real time matching of supplier & purchaser
* Reduction in approximately Rs 1.8 lakh crore annual loss due to excise duty exemptions
* Cut in Rs 1.5 lakh crore estimated loss to states due to tax exemptions
COMPANIES
* Tax credits to lower tax burden, improve profit margin for some
* No distinction between product and service for tax
* Uniform tax across the country to ease business
* Smooth movement of products across states
* One-time increase in compliance cost likely
Around 6 million entities are expected to be covered under GSTand more than 10 tax rates are likely to fall. Here's a quick look at how GST will impact the economy, businesses and the consumer.
ECONOMY
* Dual monitoring by the Centre & states to reduce tax evasion
* Better compliance through real time matching of supplier & purchaser
* Reduction in approximately Rs 1.8 lakh crore annual loss due to excise duty exemptions
* Cut in Rs 1.5 lakh crore estimated loss to states due to tax exemptions
COMPANIES
* Tax credits to lower tax burden, improve profit margin for some
* No distinction between product and service for tax
* Uniform tax across the country to ease business
* Smooth movement of products across states
* One-time increase in compliance cost likely
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