The Goods and Services Tax is the biggest indirect tax reform since 1947 and it has potential to lead the economic integration of India.
This will be charged on manufacture sale and consumption of goods and services.
The key role of the GST is to transform India into a uniform market by breaking the current fiscal barrier between states. Therefore, the GST will enable a uniform tax levied on goods and services across the country.
The current indirect tax system in India is complex with overlapping taxes charged by the Centre and the State separately.
Framework of the GST will replace indirect taxes
The GST will have a ‘dual’ structure, which means it will have two components- the Central GST and the State GST. They will both have separate powers to legislate and administer their respective taxes. Therefore, equally empowering both.
Taxes like entry tax, VAT, central sales tax, service, excise duty will all be subsumed by the GST under a single head. With GST we can expect a climate of improved tax compliance. The GST is advertised to be a game changer for the economy.
How GST Bill can impact Indian stock Markets?
GST will be a big sentiment booster for the markets because the impact will be huge in coming years and it is directly going to improve Indian GDP. Enhancing GDP will attract more foreign investments and this in turn would take India to greater heights and surely stock markets will make new highs.
To know more about share market and for tips and calls, feel free to contact Research Bhaskar. We are an established and trusted name when it comes to best stock advisory in India. We have an in-house team of market researchers and analysts, who thoroughly study market conditions to give to accurate and reliable tips.
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