After having gone through a long a tedious process of proposals, discussions, debates, hard-work and serious efforts of every person involved from its budding stage to its matured form, GST rolled out in our country. At the stroke of midnight hour on 30th june 2017 when honorable president of India Mr. Pranab mukherjee along with the honorable Prime Minister of India Mr. Narendra Modi and all the distinguished MP’s launched GST at the historical central hall of the parliament.
The very objective behind this reform is to increase the tax base, encourage more and more people to become a tax payer. This is expected to boost our countries economy and growth in GDP could be observed in the next few years. This is not the first time when a tax reform has been made in our taxation system, we have a long history of reforms being made time and again, but all the previous reforms only complicated the already complex system of indirect taxes in our country. India famous for diversity in its culture also had a diverse tax structure comprising of as many as 17 different types of taxes.
Goods and services tax (GST) is an indirect tax thorough out India which not only encompasses all other taxes in it, but also eliminates the cascading effect of taxes completely. Now there will be only one tax (GST) uniformly applicable in the whole country no matter which state you live in.
Though there are some concerns which needs to be addressed by the government. The whole process of filing the returns has been made online which could cause problems for the technologically challenged people specially the business men of the rural areas where the internet connectivity is still very poor. Service tax which earlier used to be 15% has now been put into 18% slab of the GST causing all the service related sectors like insurance, bank services, eating in restaurants, telephone and electricity bills etc . to become more expensive. Inflation is expected in the initial few years, which will affect the common man popularly called as the middle class of Indian society.
Goods and services tax (GST) with all its pros and cons is set to affect our lives. A lot of people are skeptical about the consequences of this major tax reform. Well, for now all we can say is that it’s a good reform done with good intention. But ultimately how it is going to shape up the future of India is something that only time will tell.