Government’s smart technique to implement tax is called GST, goods and service tax which were introduced in Indian Parliament by former finance minister V.P.Singh during late Shri Rajiv Gandhi’s government.

Discussions were carried out over a long time. Somehow bill wasn’t passed. After 29 years current finance minister Mr. Arun Jaitley introduced the bill again on February 2015 finally at the historical midnight of 30th June 2017 our Prime Minister Mr. Narendra Modi declared in parliament GST to be in effect.

GST in an indirect tax levied on the sale of goods and services. For that goods and services are divided into 5 tax slabs of 0%, 5%, 12%, 18% and 28%. Government generates its income by levying two types of taxes direct and indirect.

Direct taxes are levied on personal bases which are deducted at source or to be paid at the end of every financial year whereas indirect taxes are levied on production and marketing of goods and services such as excise duty, service tax, custom duty, surcharges at state level and central level, octroi, VAT and so on. These all taxes are abolished and simple tax GST has been introduces which is applicable at the same rate at each and every part of our country that is why it is termed as ‘single tax for one nation’.

It is imposed on variable items at variable rates for example 2.5% on soaps and detergents, 5%on garments 12% on property bookings, 28% on movie ticket which is costing more than 100 rupees. Same tax is applied on entertainment parks, five star hotel bookings and AC restaurant bill payment. However, some of the products like groceries cereals fresh vegetable and fruits, dairy and meet products are totally exempted from this tax which is basic necessities of life.

Introduction of GST has innumerable benefits such as-

Reduction in logistic cost of business: implementation of GST has made interstate movement of raw materials and finished products cheaper and less time consuming. A uniform pattern of taxation all over the country has further reduced cost of interstate business. Due to this, business flourished within the country.

Higher growth of small business: GST empowers small business to pay lower taxes. This will help small entreprenuer easy to establish their business.

Reduce corruption- GST is a transparent tax as it is uniform at everyplace. Costumer is aware of the tax slabs. This will definitely help to reduce corruption.

Beneficial to consumer; According to experts. In the long run GST will be beneficial to consumer as goods will be cheaper so that consumption will increase.

However there are certain disadvantages too.

Some retail product which is cheaper now like garment and clothes will be costlier due to GST.Some experts say that real estate market would suffer due to rise in tax level which will make demand of property lower.

Air fares are rise up due to GST so aviation industry would suffer mainly The new adaption has to be taught to all employees and system technicians which will be a burden for government to educate them and changing system accordingly.

Despite of all these as per my opinion GST will definitely help to bridge the gap between rich and poor to some extent as basic necessities are exempted all luxuries are heavily charged. I’m sure India will no more have to face poverty in future. Eradication of corruption will surely boost our economy. Indian markets will be flooded with profits. Indian economy will be stronger in global market. The day is not far when we can proudly say India is a developed nation and not developing.

GST is the first step that India will be taking towards a perpetually journey of high economic growth rates, development and a nation that Mahatma Gandhi dreamt of.