Advantage And Disadvantage Of Gst

1419 Words6 Pages
ADVANTAGE OF GST
Gst will remove the cascading effect of tax on tax and as a result the price will be low because of the lower tax component in it lowering of the price will increase demand resulting in higher growth and employment level lower tax rate will increase the tax compliance and hence the revenue of the government lower prices of the commodity would also mean a high export compitivness
It will increase the speed of the supply or logisit efficency as the barrier due to the different tax collection point will go
Over time tax buracreacy of government will shrink because of the abolision of various indirect taxes as a result the net tax realized by government will increase because of the reduction in revenue expenditure like salaries provident fund etc…..

SINGLE GST VS DUAL GST
There are two constitutional amendment bill associate with gst bill in india 115 constitutional amendment act and 122 constitutional amendment act . 115
…show more content…
The act provide for the dual gst model that is the gst model will have the two component one is the cgst and the other is the sgst the existing central sale tax levied on the inter state trade will be disscountinued instead a new term know as the igst which is interstate gst will arise the igst will be the sum of the center and the state good service tax in the gst rate a four tire rate structure have been approved by the gst council it consist of a lower rate of 5 % 12% 18% and the 28% the fifty percent of the item in the common price index commodity basket of india has been exempted from the gst council and that define the zero rate gst item of the mass consumption will be attract 5 % of the gst demerit good luxary item and the white good will attract a pick rate of 28% at present white good attract an exercise duty of 12.5% and the vat of 14.5% in most of the state this make total on a white good as the 27% but due to the cascading effect it goes on the 32% rest all the item are kept under the normal 12% and the

More about Advantage And Disadvantage Of Gst

Get Access