Advantage And Disadvantage Of Gst

As part of the budget announced February 11, 2014, the federal government proposed changes to the requirements for filing a Section 156 election for closely related groups on form GST25. These changes take effect January 1, 2015.

If the taxes for business are lowered, the businesses will be able to increase employment, and that will lead to the unemployment rate further decreasing, which will improve economic growth. In addition to that, the businesses will spend more on supplies and as it spends more on supplies, other businesses will get higher demand, and that will lead to more money that can be spent on multiple things such as hiring people, and improving production, and management efficiency. Eventually, this will be a ripple effect, and the Canadian economy will

Decreasing a lump sum tax will shift the IS curve to the right. Decreasing the lump sum tax will increase consumer income, which will cause aggregate demand to go up.

whether the tax strategy is sustainable under the tax law and therefore over whether the additional

The producer surplus at world price is represented at B however, due to tariffs, the producer surplus expands from B to (B+G). Therefore, a tariff decreases consumer surplus however, it also increases producer surplus.

considering a twenty-five percent tariff and the purpose will be predominantly protective in nature, but

There are lot of concerns to this issue. Why is the government imposing this tax and proposing to the community? Why are people against this tax? People are against it

The Howard Liberal Government introduced the Goods and Services Tax (GST) in 2000, as part of the A New Tax System (ANTS). It currently exists as 10% consumption tax on most goods and services sold or consumed in Australia with notable exceptions on fresh foods, education and health. In a radio interview, former PM John Howard explained his preference for minimal exemption and the necessity to pass the bill through senate required the government to negotiate with the Australian Democrats (Reynold 2000). In its current form, the GST has bipartisan support due to its relative success. Recently the need for more revenue for States to

Further taking the economic perspective into account, this would even help the nation as a whole by increasing its total production and achieving economic growth. This in turn could lead to greater equality amongst the citizens and the whole theory about levying taxes prospective in nature could be dropped without having any arguments.

The next measure to be analysed is the legislative amendment. Prior to beginning the analysis the first fact to establish is whether Article III applies. Generally Article III applies to internal measures and the legislative amendment is an internal measure. Furthermore Article 3(4) specifically applies to the amendment as it is not a tax or charge but affects offering for sale by increasing the cost of production.

Reducing VAT standard rate which is 8% for now can be considered as an incentives for more private sector and foreign investments when there is less tax over there transactions and imports specially when there is high VAT tax rate in neighboring countries also the real burden suffering group which is the public will show less resistance to the tax implementation which is a huge privilege to government, its impact over trade and regional businesses will be there however.

the final point of consumption and not at the manufacturing stage. At present, separate tax rates are applied to goods and services. Under GST, there would be only one tax rate for both goods and services. The goods and services Tax will indeed be a further significant improvement towards a comprehensive indirect tax reforms in the country. Integration of goods and services taxation would give India a world class tax system and improve tax collections. It would end distortions of differential treatments of manufacturing and service sector. GST is expected to create a business friendly environment, as price levels and hence inflation rates would come down overtime as a uniform tax rate is applied. It will also improve government’s fiscal health as the tax collection system would become more transparent, making tax evasion difficult. An attempt is made in this paper to study

GST is a simplified tax structure applied on both goods and services. It is value-added tax levied at all points in the supply chain with credit allowed for any tax paid on input acquired for use in making the supply. It would be applicable on supply of goods or services as against the prevailing system of tax on the manufacture of goods or on sale of goods or on provision of services. It would be a destination based tax as against the existing system of origin based tax. In order to maintain the federal structure, the nation is going to have dual GST, central GST (CGST) and the state GST (SGST). This means that there will be common tax base for both the centre and the states. There will also be integrated GST (IGST). It would be levied on inter-state supply of goods and services. This would be collected by the centre so that the credit chain is not disrupted. Import of goods and services would be treated as inter-state supplies and would be subject to IGST in addition to the applicable custom duties. Rates for all the three would be decided by the GST council.

Abstract: Goods and Service Tax is a comprehensive tax levy on manufacture, sale and consumption of goods and services. GST is termed as biggest tax reform In Indian Tax Structure. It will not be an additional tax, it will include central excise duty, service tax additional duties of customers at the central level, VAT, central sales tax, entertainment tax, octroi, state surcharge, luxury tax, lottery tax and other surcharge on supply of goods and services. The purpose of GST is to replace all these taxes with single comprehensive tax, bringing it all under single umbrella. The purpose is to eliminate tax on tax. This paper will throw light on GST its features and also effect of GST on prices of

It has been long pending discussion to abolish various types of indirect taxes and implement a single taxation system. This system is called as GST. The main expectation from this system is to terminate all indirect taxes and only GST would be levied both on goods and services.