Page 18 - NIS English 01-15 July,2023
P. 18
Along with government
businessmen, common
people also benefit
The implementation of GST has increased
transparency and accountability in the
tax system. On one hand, this has facili-
tated the government, on the other hand,
it has proved beneficial for businessmen
31% on the majority of the items. In such a case, and consumers as well.
the taxpayer had only two options: either pay higher
taxes or steal it. Tax evasion was common once up
on a time. In India, there were numerous market The benefit to the common man
types. Because of the disparities in tax rates, each
state represented a distinct market. Interstate n Different types of taxes on goods have been abol-
taxes became ineffective, as trucks had to wait for ished. Due to the abolition of tax on tax, there is no
hours, if not days, at state borders. unnecessary increase in the cost of goods. Com-
Prior to GST, the tax system in the country and pared to earlier, the prices have come down.
states required businesses to pay a variety of taxes. n
For example, excise duty had to be paid on the The tax rate has been kept very low for essential
goods as soon as they left the factory. Many goods things in life. Due to this, the things which are more
were subject to additional excise taxes. If the same useful for the common people are available cheaply.
goods were shipped from one state to another, There will be relief for poor and low-income people.
an entry tax was levied as soon as they arrived. n The income of the government increased due to the
Following that, tolls vary depending on location. maximum part of the business coming under the
VAT had to be paid when the goods were sold. In ambit of GST. This increased income is being used to
many cases, a sales tax was also levied. If an item improve the facilities for common people like educa-
fell into the category of luxury, a separate luxury tax tion, health, and transport.
had to be paid. If those goods were made available
in a hotel, restaurant, or other establishment,
service tax had to be paid separately. The price
varied due to different tax rates on the same goods
in different states. That is, before reaching the
consumer's hands, any goods or services had to GST has reduced consumer
pass through a variety of taxes.
However, the situation changed dramatically spending and increased sav-
the day GST was implemented. All 17 taxes were ings. The tax burden on con-
consolidated. India merged into a single market. sumer products has come
Interstate highway blocks were removed. The down. Tax rates on items of
elimination of the entry tax made it easier to enter
cities. Different states levied taxes ranging from daily use have come down. Ac-
35% to 110% in the name of entertainment. This cording to the study by the Min-
was drastically reduced. Previously, 235 items were istry of Finance, there is a sav-
taxed at 31% or higher. Except for ten, the tax on all
of these was immediately reduced to 28 percent. The ing of 4 percent on the monthly
tax on those ten items was reduced even further, to household expenditure.
18%. Many slabs were made in a short period of time
to prevent the price of any commodity from rising.
16 New India Samachar July 1-15, 2023
