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Question ID : 36900

impact of gst

What will be the short-term impact of GST?

Posted by Mohit Gupta on Dec 21, 2018

Filed Under GST

Answer ID : 76086

There is a positive short term impact of GST on the business environment of the country. Due to implementation of GST cascading impact of indirect taxation is no more there. Apart from that due to robust system of GST certainly transference has increased in business transactions. Transparency is going to impact indirect taxation collection as well as direct taxation collection because big businessman who earlier used to hide their transaction by doing the same in cash which are coming to surface now. Country is knowing the tax collected by the government on account of GST. This is also having positive impact on the state governments as they are getting their accurate share in pie with is actually due to them. Definitely an increase has came in the working capital requirement of the business and there has been increase in statutory compliance cost of small business as they have to file the required returns in parallel with big business houses. A welcome step for reduction in tax rates an effort towards bringing the average rate of tax to 15% have been taken by the GST council which is going put a favorable impact on the common people of the country particularly the middle class and as result of reduction surplus fund will be available in the pocket of the person which can be utilised for other needs in turn which will contribute in increasing the GDP of the country a whole. There is a considerable change in the pace of refund than the duty draw back and service tax regime which is going to leave a footprint on the export business(either services or goods).

Posted by CA. JHA SHANKAR KUMAR on Dec 21, 2018