GST stands for Goods and Service Tax. It was introduced on 1st july 2019. GST had brought with it a new implications and impacts.ITS IMPACT ON INDIAN ECONOMY:
1. GST is a destination based indirect tax that will remove the cascading effect of taxes. It had replaced a number of service tax like Value Added Tax(VAT), Counter Vailing Duty(CVD), etc.
2. GST shall ease the doing tax by removing the problem of the indirect tax.
3. GST has its impact mainly hon both the manufacturing as well as service tax. Though the common man found the GST to be not useful, but later on they realise that GST is for their benefit only.
4. GST had helped a lot to remove black money. GST overall reduce the cost of the business like warehouse and logistic cost.
5. GST had its main impact on the agricultaral sector. Tax charge on fresh milk is 0%, while skimmed milk and condensed milk are 5% and 18% respectively.
6. GST also has its impact on telecommunications. The use of mobile data has increased more than that of US and China. Under the impact of GST all telecome services and products are charged at 18%.
7. GST has also its impact on banking sector. The financial services such as credit card payements, ATM transactions, fund fees, etc. are charged 18% under the impact of GST.
8. GST has its impact on insurance sector also. Insurance premiums such as term insurance premium, annual insurance premium, health insurance premium and car insurance, etc. was charged 15% before GST, but now it is being charged 18%.
9. GST has its impact on tertiary sector also. The production of goods and export production ratio has increased. Imapct of G.S.T. on Indian Economy
10. GST has helped to remove the black money a lot. No more cheats can be made by shopkeeper to their customers.
CONCLUSION:
GST faced a major critism by the citizens of India when it was firstly introduced due to its strict structure and situation of unrest. A lot of changes and clarifications are made since its implementation and still the laws and systems in process to improve the process of GST. Simplifications made by GST council would encourage fast adoption and easy access of GST amongst the trading community. Thus overall, we can say that GST has its vesry good impact on Indian Economy, as it had helped a lot to remove the corruption and black money fron India.