GST-           THE MUCH AWAITED SO CALLED MAGICAL                      FRAMEWORK

 WHAT IS GST-           GST IS GOODS SERVICE TAX AS PER ABBREVATION AND IS ONE OF THE MOST AWAITED FRAMEWORK AND TAX REFORMS GST IS A  SINGLETAX APPLIED IN THE SALES INVOICE AND IT REDUCED THE NO OF INDIRECT TAX  .   EVERYBODY IS LOOKING IN A WAY THAT AS SOON AS IT IS IMPLEMENTED   THE INDIAN ECONOMY WILL REFORM BY LEAPS AND BOUND . IS IT REALLY SO. 

WHY GST AND HOW IT IS DIFFERENT FROM VAT -

TILL NOW THERE ARE MULTIPLE TAXES LIKE CENTRAL SALES TAX,STATE TAX,ENTRY TAX,LICENSE FEES,TURNOVER TAX AND THAT ALL WILL VANISH AND WILL COME UNDER GST. SO BUISNESS MAN WILL GET A CLEAR VIEW OF TAX TO BE PAID INSTEAD OF THE HIDDEN TAXES.IT WILL PROCEDURES MORE SIMPLE AND TRANSPARENT.IT WILL BE A  SOURCE OF  REVENUE FOR GOVERMENT APPART FROM INCOME TAX AND PERTOLEUM TAX. EARLIER THERE WERE VAT IN STATE . DIFFERENT STATES HAS DIFFERENT VAT REATES AND REGULATIONS  AND STATES CUT THESE RATES TO PULL INVESTORS WHICH IN TERMS GIVE LOSS TO THE STATE AND CENTRE.IT WILL GIVE A UNIFORM TAX TO ALL  THE SECTORS AND ALL THE REGIONS. THE TAX OLLECTED WILL BE DISTRIBUTED BETWEEN STATE AND THE  CENTRE WITH A ACCEPTABLE METHOD.STILL NOW THERE IS NO ACCEPTABLE FRAMEWORK READY TO DISTRIBUTE TAX BETWEEN CENTRE AND STATE.

WILL GST REDUCE INFLATION AND PROGRESS DEVELOPMENT-

DOES BY IMPLEMENTING GST A CONSUMER GETS GOODS AT CHEAPER RATE? AS THE NO OF TAX WILL BE OMMITTED BUT THE ANSWER OF THIS QUESTION IS NOT CERTAIN.IN INDIA THE RATE OF ALL DIRECT AND INDIRECT TAXES ARE AT 18% AND IN ORDER TO  MAINTAIN THE  CURRENT TAX REVENUE LEVEL IT SHOULD BE AT 18% BUT AT THIS RATE GOVERMENT WILL NOT BE ABLE TO DO TREMENDOUS DEVELOPMENT FOR WHICH ALL IS WAITING.IT IS BEING PREDICTED THAT THE TAX RATE WILL BE AT 24% IN ORDER TO BOOST DEVELOPMENT. BUT AT THIS STAGE ALL THE THINGS WILL GO VERY HIGH. THE SERVICE TAX WILL ALMOST DOUBLE FROM HERE. THE ARTICLES WILL BECOME COSTLY AND PURCHASING POWEWR OF PEOPLE WILL COME  DOWN THUS DEMAND WILL BE LESS AND THAT ALSO HAMPERS ECONOMY REVIVAL. SO IT HAS TO BE IMPLMENTED IN A SMARTER WAY AND IT IS A LONG STRATEGY TO DO ECONOMIC REVIVAL AND WILL NOT HAVE IMPACT IN SHORT TERM . HERE ARE THE SOME SECTORS ON WHICH GST WILL BE HAVING  IMPACT.

SERVICE SECTOR-                    BETTER CREDIT ACROSS GOODS AND SERVICE BUT THE                                                        THINGS WILL GO COSTLIER.

REAL ESTATE-                           SIMPLIFIES LEVY AND VALUATION,STAMP DUTY MAY                                                             CONTINUE   TO APPLY.

BANKING,FINANCIAL 

SERVICES AND INSURANCE-   COST OF  BANKING WILL INCREASE ,INTERST ON                                                                      LOANS EXPECTED TO BE TAXED UNDER GST.

ENTERTAINMENT AND 

HOTEL INDUSTRY-                     ELIMINATES MULTIPLE TAXES,SIMPLIFY COMPOSITE                                                              TRANSATIONS,

IT AND TELECOM-                       END TO CLASSIFICATION DISPUTES ON                                                                                         SOFTWARES,SIM CARDS,FRANCHISEE FEES.

MANUFACTURING SECTOR-     ENTRY TAX IN STATE WILL BE ELIMINATED.

                                                         INCREASE COST OF PRECOURMENT,NEGATIVE                                                                           WORKING CAPITAL IMPACT.