Goods and Services Tax (GST): Advantages and Disadvantages
Taxes have been implemented in the society by the human civilization for ages. A number of studies have been conducted regarding the development of taxation in the society since the ancient times. Taxation is beneficial as it is the only way through which the government can provide the basic infrastructure and prosperity to its citizens. The latest development in this regard is the introduction of GST in India. GST is a short acronym for Goods and Services Tax. The GST has been implemented by the government in India. In the present article, an attempt has been made to examine the advantages and disadvantages that are associated with GST.
Before proceeding with the pros and cons of GST, it is important to briefly discuss what GST is. GST can be described as the replacement of all the indirect taxes that are being currently levied by the government on goods and services across the country. In this way, basically GST can be described as direct taxation that will provide a single domain of tax. That is to be levied at the national level. GST is consolidated on the basis of a uniform rate of tax and it has to be paid at the end of the final destination or at the point of consumption. GST will reform the current taxation regime and it will provide for a coalition between the Central and the State Government. GST will provide a basic cooperated linkup among the Indian markets that is expected to provide a boost to the economy.
Let us proceed with the advantages and disadvantages that can be expected by the implementation of GST in India. Among the advantages of GST, the following need to be mentioned:-