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Is GST really a One nation, One tax system?

GST is considered the biggest indirect tax reform of Independent India. Being projected as “one nation,
one tax,” GST has created optimism for businesses. The main objective of this Goods and Services Tax
is to replace multiple taxes with a uniform tax on supply chain of goods and services. The aim is to
remove the cascading impact of tax on tax and create a national market for goods and services. The
framework of the GST, however, appears to be drifting away from this. Let's see if the GST is indeed “one
nation, one tax.”


1. Multiple tax slabs

We have ended up with 31 GST legislations, 29 VAT legislations and a union legislation on Central
Excise instead of one single tax for the entire nation. The Constitution has concurrently empowered
centre and states to levy GST on goods and services supply within the state. There is a CGST and
around 29 state laws on GST as each state has its own SGST. The Centre has further been empowered
to levy the tax on supply of goods and services during trade between entire sates or commerce (IGST).
The net result? A whopping 31 legislations of GST, each different from the other namely CGST, IGST and

Value Added Tax and Central Excise Duty on specified products like petrol, diesel, aviation fuel and
alcohol continue. Apart from these indirect taxes, tobacco and tobacco products have been subjected to
central excise duty tax besides GST.

2. Too Many Tax Rates

Most of the countries with GST have a single tax rate. Some have two. But India has four different tax
rates for GST. Service tax which earlier had one rate is now divided into 4.

3. Tough to Comply

Number of returns to be filed under GST will rise enormously as a result of this. Small businesses with
poor power supply and low internet connectivity will either struggle to file their returns or go out of

4. Scope for Evading

Many businesses are eyeing the scope for evasion. According to the law, businesses with less than INR
20 lakhs yearly turnover can be exempt from GST. Small shell companies may grow to evade the tax

Digital Trail As there will be less evasion. More investments. Inadequate Coverage Close to one-third of products and services are not under GST. So. benefits everyone The introduction of the GST is transformative as it benefits everyone and hurts none. Lower prices of most products and services benefit the consumer. 6. 2. more jobs. No Limitations on GST Laws Article 246A empowers the Parliament and state legislatures to make laws for GST. More tax papers means more revenue and easier administration across states. not binding statutory laws. This is because post tax rate on most products and services is lower than pre GST. Ensures Tax Compliance Across the Nation Businesses will benefit because there will be easier tax compliance on account of lower tax rate and simpler interstate movement. Digital GST For Uniformity across states As GST online is digital and online. 5.system as a result. 3. The biggest problem is that the GST introduced is far from ideal. there will be a broad digital trail of taxes and businesses. 4. Nothing in the constitution prevents the centre and state from enacting CGST and SGST in ways that deviate from the GST Council. Hurts none. varying far less. taxes need to be subsumed across the state. and higher growth will result. If the regulatory body does not have the power to make changes for the benefit of uniformity. n number of permutations and combinations are possible. restaurants looking to purchase alcohol for their menu. This includes petrol and liquor industry and parts of realty. what good is GST? Yes 1. and more taxpayers. This will create a major issue for companies that take services or products from those outside the GST ambit. Tax ushered in will boost the economy through one tax for one nation. A lot of compromise has been the . GST Council can only make recommendations. It places no limitations on laws on GST. for example.

One tax system? -Mayank (11/06/17)  Hi everyone. There are closer to 6 different rates rather than 1 or 2 at latest count.  « Previous  Next » Post your comment Discussion  RE: Is GST really a One nation. it remains to be seen if this philosophy of any GST is better than no GST will be successful. ..and other types of taxes. Here are few benefits that GST offers: It eliminates multiple taxes. one tax” reforms that are questionable? A lot depends on the economy. Businesses are concerned about assessment hurdles in getting input credit and compliance.. Manufacturers will be benefited.. States have been given power to levy taxes on services....and it is also very easy to understand because there are 4 types according to the different types of products  RE: Is GST really a One nation.. but allocation of taxation limits and jurisdiction remains a critical issue.. One tax system? -Group discussion (07/17/17)  I have had this topic for discussion in one of my interview recently. One tax system? -GST (07/17/17)  This is a very common topic of discussion nowadays.and people didn't know ho all these taxes are applicable... with “one nation.... a single GST would have been glorious.I would like to say that GST is a one nation. It is well written and has been compiled briefly. because before that. thus tax structure will be simplified Single tax system is more simplified and will attract more foriegn investor  RE: Is GST really a One nation. and resolution of compliance issues with respect to this.. But just how bright can India's future be..we have many taxes like service tax.but now When GST is introduced it is easy for the people to understand what amount and why they are paying this tax. Are the states trained to handle the disparities? While sincere attempts have been made to resolve tax system. thus taxes will be lower.. thus govt. consequence of letting states have the power to make changes.. less than 20 percent in manufacturing and agriculture which is untaxed.. revenue will increase Paying single tax is easier than paying multiple taxes.service charge. No other country has implemented GST where 60% tax is in services. Forming the cornerstone of cooperative federalism. Those who are up for group discussion will be surely benefited.. Lower tax will reduce tax evasion.