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Rohit typing center allahabad & [ PINTU]

created Jul 30th 2018, 14:48 by pintu kumar


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309 words
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Goods and Services Tax (GST), implemented from 1 July 2017, is a single tax imposed on the supply of goods and services, right from the manufacturer to the customer. It was mainly put in place to simplify the current multilayered federal, state, and local indirect tax structure. Under the existing structure, at each point of sale, additional taxes were applied to the after-tax value of each good and service. The rational behind introducing GST is to eliminate this compounding effect by fixing the final tax rate, where goods will fall into one of four rate slabs of 5, 12, 18, and 28 per cent. This note first documents the impact of GST on consumers, traders and manufactures. Second, it also analyses the effect of the GST on Indian GDP and welfare through its impact on trade. In many cases GST may weigh heavily on the consumer pockets while in others it may soothe the traders’ frayed nerves with input tax credit. Services, like banking and telecom, have now become more expensive, as a standard service tax when dining out at an air-conditioned restaurant, whereas an item which comes under concessional goods heads, like dairy products (ghee, butter oil etc), will attract 12 per cent as tax. Services and products like ATM, vending machine and chewing gum are categorized as luxury products with 28 per cent GST. Talking about individuals, the segmentation of the tax slabs has been done in such a fashion that it has considered the sentiments of the masses. With GST in place, ecommerce is the major gainer as there are more tax benefits which come  along with the new tax regime. The manufacturing sector of any country is major economic driver for the developing economies across the globe. However, unlike others, India’s manufacturing  industry is still scrambling with others and the performance has been lackluster.  

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