GHCL Digest JUNE 2018

Advantages of GST -
1. GST is structured to simplify the current indirect system by removing mul ple taxes. It creates India as a
single market.
2. It taxes goods and services at the same rates so many disputes are eliminated on tax ma er.
3. The procedural cost is reduced due to uniform accoun ng namely, CGST, SGST, IGST have to be
maintained for all types of taxes.
4. More business en es including unorganized will come under the tax system thus widening the
tax base. This may lead to be er and more tax revenue collec ons.
Disadvantages of GST:
1. There will be dual control on every business by Central and State Government. So compliance cost will
go up.
2. All input credit will be available from online connec vity with GST Network. Hence, small businesses
may find it difficult to use the system.
3. States will lose autonomy to change their tax rates.
4. Manufacturing states would lose big revenue as the revenue will shi to consuming states.
5. GSTN may not work op mally for quite some me posing problems for businesses in compliance.
However all said and done GST indeed is a revolu onary step in the history of India and is certainly expected
to put the growth engine of Indian economy on a high note.
June 2018
16