How is the GST going to affect your life? It depends on your state economic policy
Presently, India is undergoing the biggest economic reformation. It is probably the strongest endeavor in the history of independent India. But the question is how this reformation is going to help us? Will it help us to lead a better life or not?
GST, Goods and Service Taxes have come into the action since 1st July 2017. It does nit only bring about a massive change in the taxation but also in the entire federal system of India. Though this modifies, the states are compelled to give up their parts of taxes to strengthen the economy of the whole country.
Application of GST in the Other Countries
The other countries have also undertaken this method with individual variations.
In Australia, GST is meant for the central Government whereas the revenue is divided between the states and the central Government.
Canada has consumed a compiled model of GST. It charges a uniform charge of VAT and service tax, and it is maintained by the Revenue Agency of the country. Only one state Quebec charges the state-level taxes.
In USA different states charges different taxes and their growth also differ from each other. There is no tax sharing between state and center.
The Expected GST-effect in India
This severe change in the revenue system of India would reform the messy economic system of the country. There’s no more confusion among the different taxes. It is expected that this reformation would bring about massive investments and growth in the economy of the country shortly.