7/7/2017 The advantages of GST: Take a look at benefits - The Economic Times

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like this. The advantages of GST: Take a look
at benefits
BY ET BUREAU | UPDATED: AUG 04, 2016, 07.37 AM IST Post a Comment

SPOTLIGHT
Time To Take Off The GST Advantage
Geo Strategies

As the Rajya Sabha prepares to pass the

constitutional amendment paving the way
for the goods and services tax (GST), the
reform is expected to bump up GDP by
about a percentage point or even more.
Here's a look at GST's benefits.

1. Life gets simpler

Smaller cities offer cheaper Bhutan
GSTnot
willthe sole17sufferer,
replace indirect tax levies and As the Rajya Sab ha prepares to pass the
airfares to overseas hotspots Chinacompliance
is bullying others too
costs will fall constitutional amendment paving the way for the
International budget carriers are offering Several countries in Central Asia, goods and services tax (GST), the reform is
cheap fares from Lucknow, Jaipur and Southeast Asia and East Asia have been expected to b ump up GDP.
Trichy, to Singapore, Hong Kong and other forced 2.
by Revenue will get
China to accept a boost
its territorial
cities in Indias neighbourhood. - Evasion set to drop -rates.
claims or loans at high interest Input tax credit will
Generate Enquiries for your Business by Listing
IndiGo says Air India 'very important' to encourage suppliers to pay taxes - States on Economictimes.com
meet long-haul goals
and Centre will have dual oversight - The
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List Your Business
number of tax-exempt goods will decline

3. A common market
It's currently fragmented along state lines, pushing costs up 20-30%

4. Logistics, inventory costs will fall

Most Read Most Shared Most Commented Checks at state borders slow movement of trucks. In India, they travel 280 km a day??
compared with 800 km in the US
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but can't bite
5. Investment boost
View: How a single clause in GST shows the Indian
state at its worst For many capital goods, input tax credit is not available. Full input tax credit under GST will
mean a 12-14% drop in the cost of capital goods. Expected: A 6% rise in capital goods
Bhutan not the sole sufferer, Beijing is bullying
other nations too investment, 2% overall.

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7/7/2017 The advantages of GST: Take a look at benefits - The Economic Times

Do you skip lunch breaks to finish

work? That's bad time management

A Sino-Indian armed conflict: Why

China can bark but can't bite

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inflationary: P Chidambaram

6. Make in India
Sale of weapons to India would
undermine strategic balance: Pakistan a) Manufacturing will get more competitive as GST addresses cascading of tax, inter-state
tax, high logistics costs and fragmented market b) Increased protection from imports as
GST provides for appropriate countervailing duty.
Got a query on GST? Ask from
experts now
Also read: GST impact across sectors: Take a look at the winners and losers

7. Less developed states get a lift

The current 2% inter-state levy means production is kept within a state. Under the GST
national market, this can be dispersed, creating opportunities for others

8. Manufactured goods could become cheaper Lower logistics and tax costs

9. GDP lift HSBC estimates an 80 basis point rise in GDP growth over 3-5 years. NCAER
Mercedes-Benz adds to SUV portfolio: pegs this at 0.9-1.7% thanks to the elimination of tax cascading
Launches GLA Class in India, starting at Rs
30.65 lakh 10. Freeing up online State restrictions and levies have complicated ecommerce. Some
sellers do not even ship to particular states. All this will end with GST
Gainers
Unitech Ltd. Potential Pitfalls Once the Upper House passes the amendment, there's a long way to go
7.80 1.30 20.00
and much work to be done before the government's April 1, 2017, deadline can be met.
6.70 7.80
Factors that could trip up GST:
Gifts for everyone! PM Narendra Modi's
presents to world leaders - The actual regime may not be the best possible - Too many exemptions could undermine
the levy - Goods like petroleum, alcohol and tobacco may be excluded - A high tax rate
would stoke inflation as service taxes will rise more steeply - Fiscal stress if expected
No time to kill: How smartphone is collection efficiency doesn't materialize early
pushing chewing gum out of fashion

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