Vol. 7 No. 2 (2017): Vol 7, Iss 2, Year 2017
Articles

Importance of goods and services tax in india

MOHAN PRAKASH R.S
Assistant Professor Department Commerce (CA) Bharathidasan College of Arts and Science, Erode
Published June 30, 2017
How to Cite
R.S, M. P. (2017). Importance of goods and services tax in india. Journal of Management and Science, 7(2), 338-341. https://doi.org/10.26524/jms.2017.50

Abstract

The multi-staged tax structure has charges from the State and Union governments separately,
leading to cascading effect of taxes. There are taxes at different rates and at multiple points.
The GST is an indirect tax which means that the tax is passed on till the last stage wherein it
is the customer of the goods and services who bears the tax. This is the case even today for all
indirect taxes but the difference under the GST is that with streamlining of the multiple taxes
the final cost to the customer will come out to be lower on the elimination of double charging
in the system. GST is a transparent Tax and also reduces the number of indirect taxes. With
GST implemented a business premises can show the tax applied in the sales invoice.
Customer will know exactly how much tax they are paying on the product they bought or
services they consumed. GST will not be a cost to registered retailers therefore there will be
no hidden taxes and the cost of doing business will be lower. This in turn will help business
being more competitive. The consumer will get the end-product at cheaper rates because of
elimination of multiple taxes and the tax cascade. An attempt is made to spot light the
importance of Goods and Services Tax in India.

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