The goods and services offered by the country met the required global standard in terms of quality but failed to maintain a competitive price. GST encourages production through the allocation of input tax credit. It will reduces the cost of production and the manufacturer can enjoy the benefits from large scale operation. Under GST the production cost will decline and as a result the product will be available with a less price. It also widens the scope for export promotion with its competitive advantage in price. The less production cost in the country will definitively attract foreign direct investment and foreign portfolio investment. It enables the nation to strengthen its mission 'make in India'
For the purpose of simplifying the system of taxation, the government introduced Goods and Service Tax Network as a nonprofit organisation for creating a platform or website for all the concerned parties of GST. The portal is supposed to be accessible to the central government which allow it to track down every transactions on it end. It helps the government for set back the problem of tax evasion and tax avoidance.
In conclusion, like every economic reforms GST also have well defined objectives and made investigation for about two decades to portrait the impact of a new taxation policy. In the short run it is strait to adjudge its success. However the make over from a production oriented tax system to a consumption oriented one has made challenges in the minds of end consumers when they are supposed to pay extra for their essentials.
KIRAN P C
SDE GVHSS MANANTHAVADY
AND GST ASSISTANT STUDENT OF ASAP
September 2017