Goods and Services tax bill or GST bill is a new agenda for the Indian government. The reason is that it will put this value added tax on the manufacturing and its services under one country one tax tag. Actually, the main purpose if GST bill is to bring all indirect taxes under a single roof. Therefore, the center and state governments can share their share equally without any discrepancy. In this case, the central and state governments will work under the same direction to access the maximum advantage from the GST bill.
Practically, the GST bill will usher the tax earnings for the Central and the state governments in such a way that it will boost the Indian economy in the new dimension. Before the GST bill, tax evasion and corruption were seen in the industrial and services sectors as well. But when the GST bill will be introduced, then tax evasion and corruption will be gone forever in the Indian economy also. Moreover, one thing is sure that productivity and transparency will be visible all over the industrial and services sectors as well.
For India’s interest
When the GST bill is operational in the Indian economy, then you can expect a lot of positive development around the business sectors. The reason is that it will make the Indian economy towards the bright future where the buyers and sellers will be benefited as well. For the interest of Indian people, the GST bill will reduce the cascading effect of taxes on the price of the final product. It will reduce the low confidence on the tax regime and make the Indian people to concentrate on more buying spree as well. For the interest of Indian businessmen, they will no longer to fill the tax forms at random and it will simplify the tax structure also.
You should keep in your mind that the main focus of the GST bill is to put taxes on the manufacturing cost. Therefore, the total price of a product will be reduced and the buyers will like to spend on purchasing as well. One interesting point to tell you that all Indian distributors will like to purchase with an invoice, Therefore, it will give them a better profit margin as well. According to the GST bill, it will create more employments, boost growth and promote more exports for the Central and the States government also. As far as the individual buyers are concerned, the GST bill will come down the prices of the goods and also it will increase buyer’s consumption.
Therefore, you can expect overall development in the Indian economy. As you see that some Indian states are poor economically due to the low tax collection. In this regards, the GST bill will increase the tax collection in the backward states also. In this way, the backward states will be rich over the times. You should keep in your mind that GST is a consumption based tax. Therefore, more consumption will increase the tax collection in all Indian states as well. Due to GST bill, there will be no location bias in the tax structure. Therefore, it will be a boon to the small businesses as well.
For BJP’s interest
Under Congress rule, BJP opposed GST bill due to their vested political memorandum. But when BJP came into power in 2014, they just became hurry to implement the GST bill in the Lok Sabha and the Rajya Sabha. But they only get pass in the Lok Sabha but they could not pass it on the Rajya Sabha due to their low margin in their Rajya Sabha members. You should not think that the GST bill is a political advantage for BJP. But you can rather say that it is their unique outlook for the better tax regime in the Indian manufacturing sectors.
It will make them more powerful and commendable if they could pass it in the Rajya Sabha. But, in the recent development, it will not be an easy task for them due to the Congress’s stubbornness on this GST bill. BJP also is looking for the clear sweep in the 2019 Lok Sabha election. Therefore, they like to clear all pending dreams to be cleared before they get to jump in the 2019 election strategy wholeheartedly as well. After all, GST bill is an important issue for the Indian industries as well as BJP. The reason is that one is for winning the people’s confidence and another is for winning the vote bank as well.