New Delhi – The latest part of the Economic Survey has been discussed in the parliament. In the discussion, the revoking optimism has been noticed. It has been drafted by Arvind Subramanian the Chief Economy Advisor. After the survey, it has been reported that optimism regarding the medium type prospect of the nation’s economy has seen a drop due to structural reforms. The implementation of GST has come as a breath of relief.
There are several benefits of the tax system including reducing corruption, cooperative federalism and reducing leakage. Additionally, simplifying tax structure is another advantage which GST has brought along with itself. The survey, however, has focused on the hidden benefits of the tax system.
Inclusion of Textile Sector
It is said that the textile sector has been included in the taxation system due to the implementation of GST. Earlier some of the parts of the chain have been outside the tax regime. It led to evasion. However, now each aspect of the sector is included in a tax system.
Another benefit of GST which is hidden is the inclusion of real estate sectors’ work contract that is houses that are being built.
Taxation of Imports
This can be regarded as a great benefit of GST. Under the reformed tax system, the full tax that is charged for the domestic sale that gets levied by the government would get levied when the goods arrive.
The Tax Base Expansion
In the survey, the signs of tax expansion due to GST have been noticed. Between the June and July 2017 period, more than 6 lakh people have sought for GST registration. It is said that this number would rise steadily.
GST is believed to be able to generate a lot of data on tax collection, according to the survey. Earlier the excise used to get imposed. In that stage, a government had little data for use. With GST there will be a flow of information.
With GST, the small scale businesses would be able to keep track of the payment of tax on a regular basis. This the companies can utilize by offering credit ratings.
It has been noticed that the implementation of GST has led to a smoother transportation system. With the removal of interstate check posts, the cost of fuel and additional charges would go down.