India is developing as a huge manufacturing and services hub among world's developing nations. At present a large number of indirect taxes are levied on goods and services. These include customs duty, VAT etc.
To ease out this burdensome on manufacturing and service sectors, Goods and Services tax was proposed first on 2007-08 by NDA government. On 19th December 2014, BJP government passed GST bill on Lok Sabha as a historic 122nd amendment.
Goods and Services Tax is a unified Common tax for all products in India. GST is suggested to be implemented as a two way system: Centre GST to be collected by centre and State GST to be collected by appropriate State. A four tier Taxation is to be applied on products with 16% as a maximum, implemented for Luxury goods. GST is charged at consumer end as a collective tax in a product chain.
GST is a milestone in Indian Revenue System as it is lean and simple. Since manufacturers and retailers can reimburse their tax, price of commoditites will decrease. Also movement of goods across the nation will be rapid and timely because of this uniform structure.
However a majority of experts feel that exempting Petrol and Electricity from GST is a mystery since 40% of tax is collected from these products and Centre and State GST still creates a puzzling environment for the tax payers.
Despite certain temporary shortcomings, GST will be an yet another step for achieving Prime Minister's "Make In India" scheme to make India sit on the throne of World's Manufacturing and Services leader.
Guys kuch log puch rhe h ki dest/cpt sabhi post k liye hoga kya....dest sirf tax assistant ki post k liye hoga ...aur cpt sirf CSS aur mea k liye....see para 9(E) and 9(F) of notice dated 13.02.2016
On 8th November 2016 a revolutionary measure was taken by the Government of India to put the Indian economy on the right path. The event came to be known as "Demonetisation" in the common parlance. Demonetisation refers to the cessation of the legal tender status of a currency. In this case high value notes of ₹500 and ₹1000 which constituted about 86% of total circulating currency were demonetised i.e. they ceased to be a legal tender.
In the present times there is no doubt India is one of the fastest growing economy of the world. But reforms are needed to maintain the same trajectory of the growth and development. Demonetisation is a well thought of step in this direction. It will curb tax evasion, problem of fake currency notes, smuggling, cross border terrorism and corruption among many other things. It will bring about transparency and financial inclusion. It can be very helpful in addressing the twin balance sheet problems of bank and corporate houses.
Implementation of the Demonetisation was a much debated issue. People were made to stand in qeues outside ATMs and banks for long hours for many days. Then there was a problem of cash shortage and delays in ATM calibration. Some bank official colluded with tax evaders to convert their black money into white. But the government too kept taking steps to keep successfully thwart such motives.
Though there was inconvenience faced by the citizens yet their morale was high. They were quite tolerant in facing inconvenience for some time for the good of the country. Embarking on reforms like this would certainly make India a great economic power.