Impact Of Gst In India

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Goods and service tax (GST) is an indirect tax structure designed by the Indian government with the objective to remove tax burden of the society. Its basic objective to reduce multiple cascading taxes levied by the central and state governments like VAT, service tax, entertainment tax, luxury tax etc. The reform process of indirect tax started in the year 1986 with the introduction of the Modified value added tax (MODVAT). The present paper highlights the impact of GST on FMCG products and also on automobile sector in India. In this study it is found that GST has significant impact on FMCG products and has a positive impact on the prices of cars in India expect the hybrid cars ,this would positively affect the car buying decisions of the…show more content…
While countries such as Singapore and New Zealand tax virtually everything at a single rate, Indonesia has five positive rates, a zero rate and over 30 categories of exemptions. In China, GST applies only to goods and the provision of repairs, replacement and processing services. GST rates of some countries are given below. Country Australia France Canada Germany Japan Singapore Sweden New Zealand Rate of GST 10%, 19.6%, 5%, 19%, 5%, 7%, 25%, 15% World over in almost 150 countries there is GST or VAT, which means tax on goods and services. It has been seen that after implementing GST the prices of some items have gone up while the price of others have come down before few months ago. The one of the key objectives of GST is to make India a single market where goods and services can flow seamlessly. Formation of tax policies also plays crucial role on the Indian economy through their impact on efficiency and equity. There are some countries which followed unified GST while other countries like Brazil and Canada followed dual GST pattern on which central and state tax were imposed. India is also the country which flows dual system of GST. The concept of GST in India is introduced to become business friendly environment and to do business in ease mode. This tax reforms will help the government to improve fiscal health and system of tax collection more transparent. The Present research paper highlights on the old tax system and GST Tax system of pattern of loans and it also shows the impact of GST on product pricing on goods. Under GST there are 98 products and 50 services which were exempted in
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