A Brief Summary about What Is GST Along With Its Advantages

Often, people have queries like what is GST. So, the Goods and Services Tax (GST) can be said as the value added tax which replaces all indirect taxes that are levied on various services and goods by both the Central and State Government after it is implemented. It is used to consolidate all the State economies. It focuses upon creating single, undivided and cooperative market which makes the economy powerful and stronger. It imposes tax on manufacture, consumption and sale at the national level. It is consolidated tax based on a uniform rate and usually remains fixed. It is usually paid at the final point of consumption.

GST is usually divided into two parts:

• The Central Goods and Services Tax (CGST)
  
• The State Goods and Services Tax (SGST)

GST includes central excise duty, service tax, additional excise duty and state VAT entertainment tax. It is adopted by 160 countries around the world. It focuses on replacing the existing tax structures of centre and state taxes. GST rates are usually between 15 per cent and 20 per cent. After GST has been introduced, the number of assesses have increased by 5 to 6 times. The substances which do not fall under GST are petroleum products, tobacco and alcohol.

Advantages of GST:

There are many benefits of GST. Some of them are:

•  It makes the taxation burden to split equally between services and manufacturing.
•  It is levied at the final destination of use of goods and services.
• It helps in removing economic distortion and developing the market.
• It builds corruption free tax administration.
• It promotes more and more exports.
• It creates more employment opportunities.

Impact of the GST in Various Sectors and Industries:
The impact of GST usually occurs on dealers and retailers, country’s economy, service sectors, goods and services.

Impact of GST on Dealers and Retailers:

Retailing plays a major part in a country’s economy as it is a likable option of the common people. The introduction of GST makes up the additional cost, which eats up the money of retailer and dealers. It recognises the manufacturers and service providers only.

Impact of GST on the Country’s Economy:

GST increases the imports and helps in fighting the export competitiveness. It reduces the compliance cost for tax payers up to a large extent. It also reduces overall tax burden on goods. It has a different approach for duty cuts and tax reliefs.