Goods and Services Tax (GST) is a unified tax system in India that replaced multiple indirect taxes with a single tax.
Benefits for the common man:
- Simplified tax system: GST has simplified the tax system by bringing multiple indirect taxes under one umbrella. This makes it easier for taxpayers to comply with tax regulations.
- Lower prices: GST is expected to reduce the overall tax burden on goods and services, leading to lower prices for the common man.
- Increased tax base: By broadening the tax base, GST is expected to increase the overall tax collection, which can be used for the development of the country.
- Increased transparency: GST has increased transparency in the tax system, making it difficult for businesses to evade taxes.
Drawbacks for the common man:
- Increased prices: Despite the expected reduction in the overall tax burden, prices of some goods and services may increase in the short term as businesses pass on the increased cost to consumers.
- Complexity: GST is a complex tax system, and compliance with regulations can be difficult for small businesses and common people.
- Increased compliance cost: GST requires businesses to file multiple returns every month, which can increase the compliance cost for small businesses.
- Technical issues: The GST system has faced technical issues, such as glitches in the GSTN portal, which have caused difficulties for taxpayers.
In conclusion, GST has both benefits and drawbacks for the common man. While it simplifies the tax system and is expected to reduce prices in the long term, it also has some drawbacks such as increased prices, complexity, and increased compliance costs.
PAN Card is required to apply for a GST
