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Benefits and

Challenges of

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Introduction
• Good and Service Tax as the name implies, it is an indirect tax applied
both on goods and service at a uniform rate.
• GST was first introduced by France in 1954.
• it is in existence more than 165 countries.
Review of Literature

• Nitin Kumar (2014) inferred from his study ‘GST-A Way Forward’;
would help in removing economic distortion by current indirect tax
system and this would encourage an unbiased tax structure which is
indifferent to geographical locations.
• Pradeep Chaurasia (2016); helpful in improving 2 percent GDP of our
country.
• Akansha Khurana and Aastha Sharma (2016); GST will provide relief to
producers and consumers by providing wide and comprehensive
coverage of input tax credit set-off, service tax set off and subsuming
the several taxes.

• Monika Sehrawat (2015) ; GST will give India a world class tax system by
grabbing different treatment to manufacturing and service sector.
• Hitesh k.Prajapati (2016); Challenges and Implementation of GST in India
talked about the challenges in implementation of GST like IT sector is not
boomed, threshold limit of turnover.
• Dr. Shakir Shaik, Dr. S.A.Sameera, Mr. Sk.C. Firoz; GST in the Indian framework
will lead to commercial benefits which were untouched by the VAT system.
• Poonam, 2017 ; The cascading and double taxation effects can be reduced,
Consumer’s tax burden will approximately reduce to 25% to 30%.

• Shefali Dani ; half-hearted attempt to rationalize indirect tax structure,
As per researcher government of India must study the GST regime set
up by various countries and also their fallouts before implementing
gst. IT is the need of hour that, the government must make an
attempt to insulate the vast poor population of India, against the
inflation due to implementation of GST. There is no doubt, GST will
simplify its existing indirect tax system and will have to help to remove
inefficiencies created by the existing current heterogeneous tax
system,
Benefits of GST Implementation:

• For business and industry


• For central and state Governments
• For Consumer
For business and industry

• Easy compliance
• Uniform tax rates and structures.
• Removal of cascading
• Improved competitiveness
• Gain to manufacturers and exporters
For central and state Governments

• Simple and easy to administer


• Better control on leakage
• higher revenue efficiency
For Consumer
• Single and transparent tax proportionate to value of Goods and
services
• Relief in overall tax burden
• Reduction of prices of goods and services.
Challenges in Implementation of
GST
• Fear of States for loss of revenue
• Technological Challenges
• Trained Tax Administration Staff
• Revenue Neutral Rate (RNR)
• Threshold Limit in GST