watch_later 04/06/17

GST is biggest tax reform since independence.

It will bring down corruption significantly. However some goods or items which enjoyed exemption or lower rate of tax earlier are not being taxed under GST.

Such as Gold which was taxed at 1% under VAT and 1% under excise, will be taxed at 3% under GST.

Similarly rate of tax on textile, garments, fabric is at higher side. Business expected higher rate of tax.

What you think whether higher tax rates or taxing the exempted goods will increase following activities:

  • Malpractices to avoid or evade tax,
  • Buying and selling of bills without movement of goods,
  • Corruption due to increase in department scrutiny,
  • Effect on GDP
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