GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes. The main reason behind introducing GST is to improve the economy of the nation.
Positive Impact of GST in India:
- GST is a single taxation system that will reduce the number of indirect taxes. From now, a single taxation term would cover all of those indirect taxes.
- The Prices of products and services would reduce , thus this system would prove to be beneficial for the people who are fed up of paying high prices.
- This would reduce the burden from the state and the central government. With the introduction of GST, all indirect taxes would come under a single roof.
- GST would not be charged at every point of sale like other indirect taxes so in this way, market would be developed.
- Corruption-free taxation system. GST would introduce corruption-free taxation system.
Negative Impact of GST in India:
- The introduction of GST in the country will impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.
- GST is a mystifying term where double tax is charged in the name of a single tax.
- Most of the dealers don’t pay central excise tax and cheat the government by simply giving the VAT. But all of those dealers would now be forced to pay GST.