GST has known as the world’s tax system as number of big chances has been brought up by this tax regime. It is not wrong to say that the whole tax system of India has changed by this new one and it is not only affecting common people budget but people in business are also worried about it. According to the experts, it would take around 2-3 years to stabilize and a little bit problem has to be faced by the citizens along with the business.
Since the announcement has made regarding GST, stakeholders, industries and state government were not sure about how this affect the economy however after its implementation various changes has been made in rates of commodities, services and rates. However, teething problem has recognised by the government and they are slowly working on it.
Impact on Economy
Talking about the positive effect of GST then now every entrepreneur has to pay tax even those who were not paying before GST. Now, the revenue of government will increase and thus it will further increase the GDP of our economy. So, if we look at GST from the economy perspective then it will good for GDP as it will lead to sudden increase in GDP.
Impact on consumers
Good news for consumers is that around 50% of the consumer goods are going to become cheap. However on the other hand, banking, online shopping, telecom, eating out etc. will increase. In other words, now one has to pay more taxes on services like movie tickets, television etc.
Impact on large cooperates
Demand and supply plays an important role when it comes to earn profit however with GST, the current demand and supply in the market is not certain because of new tax figures. Talking about the big business enterprise then either they have to pass on the price to consumers but nothing can be said about the profit of a firm.
How does it affect small business?
Now, small along with medium business are now under GST and thus the cost of supply increases. Besides this, additional tax system has affected by this new tax regime but in case of less turnover says 20 lakh then one need not to registered under it.
In other words, everyone is under the effect of GST and now it's time to see how things goes in future under GST?