Impact of GST on Common Man

After crossing the various hurdles in its way, is India ready to face GST? GST is also known as Goods and Services Tax is an indirect tax imposed both on goods and services at a fixed rate. This implies products and services will be liable to a uniform tax rate and both will be dealt with at par. A single type of tax will be applied all over the country that is known as GST (Goods and Services Tax), replacing various other indirect taxes like VAT, Service tax, CST, CAD and so forth.

GST is by all accounts a blended pack with a portion of the necessities getting to be noticeably less expensive, while the others may get more costly. The Goods and Service Tax may favourably affect the greater part of the areas of the economy in the long run. While in the short run as with the majority of the changes, the advantages appear to be constrained. In view of the experience of GST usage in different nations, India could watch an inflationary effect at the onset of the change, which may blur away once the legislation penetrates.

GST affect on taxation system has affected the whole country as it has arrived with its pros and cons:

Positive impacts on common man

At present, the cost of indirect tax on goods is at the higher levels. This is on the grounds that the greater part of the goods, for example, gadgets or electronics, beauty products, non-luxury automobiles, and so on draw an excise duty of 12.5 percent and state VAT around 12.5%-15%. Additionally, there are a few falling charges because of CST, input tax credit retention under the VAT controls, demand of octroi, entry tax and different duties forced by the local body, amid the whole value chain till the client receives the item. Consumer goods that are manufactured, the present tax administration suggests that the purchaser needs to pay about 25%-26% in overabundance of the generation cost of the products because of excise duty and VAT. Along these lines, with the rollout of the Goods and Service Tax where the rate is required to be 18 percent for the vast majority of the merchandise, these are probably going to get less expensive.

• Goods like pharma products, movie tickets, paint, cement (and several construction materials), air coolers, fans, water heaters, TVs, (and other electronic items) have become cheaper.
• As compared to previous tax structure, GST is a simplified tax policy because now one only needs to pay the GST bill.
• The low prices of goods will result into an increase in the demand of the goods. There will be increment in the supply as a result of increase in the demand. Hence, this will at last lead to increase in the generation of merchandise and this would eventually result in the increase in the job opportunities.
• This policy would also help to reduce corruption in India.

Negative impacts on common man

• The primary concern is that every small trader and service provider who is dealing in interstate supply of goods or services must register, pay the GST bill and file GST returns without considering sales/income they make.
• A person has to file 3 monthly returns, which makes a total of (3*12) 36 returns plus 1 annual return. This leads to the filing of 37 returns in a year. Also, this only applies to one state, if a person does their work in various states, they have to register it in each state separately and file the respective returns. 
• Increased monthly expenses of the common man due to increased cost of service.
• Businessmen and service providers need to learn about the new laws. This will further add on to their business expenses as they have to rely on tax experts and professionals.

Some may enjoy the positive effects, while some may suffer due to the negative impact of GST on taxation. Well nobody has any choice, they have to get used to this new policy.

Any thoughts would be appreciated.