Goods and Service Tax enhance Indian Economy - 1 views

• 
  #1 koyal singh on 28 Jul 15

   

  Industry body Assocham today
  came out with a set of recommendations on the proposed Goods and Services Tax
  (GST), saying the rollout may lead to around 1 per cent rise in India's GDP
  growth.
  
  
  
  "Goods & Services Tax (GST) will be a
  game changer for the Indian economy. The new tax regime can lead to efficient
  resource allocation within the economy, improve tax compliance and positively
  impact GDP growth.

  
  
  

  "More importantly, the
  projected boost to the manufacturing sector will make the proposed taxes a
  critical enabler to actualise benefits from 'Make in India' initiatives,"
  Assocham President Rana Kapoor said.
  
  
  
  The short-term recommendations include
  formulation of a clear and unambiguous definition of goods & services, a
  revenue Neutral Rate (RNR) suitably determined to rationalise tax burden and
  evolving a consensus on threshold limit for GST application to protect small
  businesses. 

  
  
  

  "The implementation of
  GST would lead to a simplified tax regime and easier compliance norms. This is
  projected to increase GDP annually by 0.9-1.7 per cent with an accompanying
  increase in tax revenues of around 0.2 per cent of GDP.
  
  
  
  "Twenty per cent reduction in logistics
  costs of non-bulk goods is expected due to a rationalised tax framework. This
  would make domestic production of goods and services more cost effective with
  ensuing 3.2-6.3 per cent annual gains in exports," Kapoor said.

  
  
  

  The chamber also recommended
  formulation of clear 'Place of Supply' rules to avoid ambiguity in tax
  administration and a mechanism to compensate states for potential revenue loss
  from GST rollout without major distortion of its structure, etc.

  
  
  Ruchi Anand and Associates are the top Indian Audit
  firms in India who provide all tax related solutions. It is located in
  Delhi,India. RAAAS also provide services to set a new company in India.
  
  
  

   

  <div class="cArrow"> </div><div class="cContentInner"><p>Industry body Assocham today <br /> came out with a set of recommendations on the proposed Goods and Services Tax <br /> (GST), saying the rollout may lead to around 1 per cent rise in India's GDP <br /> growth.<br /> <br /> <br /> <br /> "Goods & Services Tax (GST) will be a <br /> game changer for the Indian economy. The new tax regime can lead to efficient <br /> resource allocation within the economy, improve tax compliance and positively <br /> impact GDP growth.</p> <br /> <br /> <p>"More importantly, the <br /> projected boost to the manufacturing sector will make the proposed taxes a <br /> critical enabler to actualise benefits from 'Make in India' initiatives," <br /> Assocham President Rana Kapoor said.<br /> <br /> <br /> <br /> The short-term recommendations include <br /> formulation of a clear and unambiguous definition of goods & services, a <br /> revenue Neutral Rate (RNR) suitably determined to rationalise tax burden and <br /> evolving a consensus on threshold limit for GST application to protect small <br /> businesses. </p> <br /> <br /> <p>"The implementation of <br /> GST would lead to a simplified tax regime and easier compliance norms. This is <br /> projected to increase GDP annually by 0.9-1.7 per cent with an accompanying <br /> increase in tax revenues of around 0.2 per cent of GDP.<br /> <br /> <br /> <br /> "Twenty per cent reduction in logistics <br /> costs of non-bulk goods is expected due to a rationalised tax framework. This <br /> would make domestic production of goods and services more cost effective with <br /> ensuing 3.2-6.3 per cent annual gains in exports," Kapoor said.</p> <br /> <br /> <p>The chamber also recommended <br /> formulation of clear 'Place of Supply' rules to avoid ambiguity in tax <br /> administration and a mechanism to compensate states for potential revenue loss <br /> from GST rollout without major distortion of its structure, etc.</p> <br /> <br /> Ruchi Anand and Associates are the <a href="http://www.raaas.com" rel="nofollow">top Indian Audit <br /> firms in India</a> who provide all tax related solutions. It is located in <br /> Delhi,India. RAAAS also provide services to set a new company in India. <br /> <br /> <br /></div>

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