Essay About Gst Reform And Significant Reduction

Gst Reform in India
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‘One nation one tax’ was a reform envisaged first in 1999 to bring whole of India under a single tax bracket. After 17 long turbulent years, it was implemented in India w.e.f. 1st July 2017. GST is a technology based revolutionary indirect tax reform that is introduced to eliminate multiple cascading taxes and also dismantling all the inter-state trade barriers. Prior to introduction of GST India had a fragmented tax structure whereas GST is a single window reform that will not only increase ease of doing business but also curb the parallel economy. Introduction of GST in India was necessary as India is on the cusp of becoming a financial power house moreover it will attract investors ,FDI and also increase the employment opportunities in allied industries for e.g. IT industry. In the next three months an increase in economic growth is expected because GST will make it nearly impossible to evade taxes. The 22nd GST council meeting has sent out a positive message by proposing a significant reduction in rates of many commodities moreover, a reduction in inflation can also be expected because of reduction in rates of certain items as was applicable prior to the reform. This slash in rates has been beneficial for the large players in the market whereas, regardless of this change, the small players are still adversely affected because of increased compliances which has slowed down the routine business processes along with increase in the compliance cost which will in turn reduce the working capital for the small businesses further escalating the negative effect. As quoted by Charles Darwin “Survival Of The Fittest” the traditional businesses have no escape plan but to act in conformity with the law and get registered under GST Reform in order to legally stay in the market.