GK/GS

GST – GST Full Form, Advantages And Disadvantages Of GST

GST Full Form is Goods and Service Tax. GST is an Indirect tax that will be levied on goods and services. GST has come into force from 1 July 2017 and after its introduction, the present indirect taxes like service tax, VAT and excise duty etc. will not be levied. The normal rate of GST is around 18% but on day to day essential goods and services this rate is 0%, 5% and 12% while on luxury items this rate is up to 28%.

The GST was implemented in all states of India except Jammu and Kashmir by the Narendra Modi government on Friday (30 June 2017) at 12 noon.

Advantages Of GST

1After the implementation of GST, the general public of the country will be the biggest beneficiary, you will have to pay the same tax on the purchase of all goods.
2In India, the tax system will become easier.
3After the implementation of GST, tax fraud by tax department officials will also be reduced.
4Taxes like Service Tax, Central Sales Tax, State Sales Tax and Vat will end.
5You still pay 30 to 35% tax on different items, but due to GST, you only have to pay 18% tax.

Disadvantages Of GST

1After the implementation of GST, there can be 18-20% increase on fee based transactions.
2GST will mean an increase in operational costs.
3GST is an online taxation system.
4After GST is implemented, Indirect Taxes are increasing, whereas direct taxes are decreasing.
5SMEs will have a higher tax burden.

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