Debate on GST Bill: Good morning, my respected jury members, respected teachers, my worthy opponents, and my fellow friends.
Today we have assembled here to have a healthy debate on a current and important topic which is GST bills. I_______feel honored to get an opportunity to speak and I will present my views in favor of the motion “Benefits of GST bills implementation in India”.
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At the beginning of the debate on GST bills, we all must have a clear idea about what GST is all about. GST (Good and Service Tax) is a tax levied when a consumer buys a good or service and aims at discarding the cascading effect of various taxes that prevailed earlier regarding the production and distribution of goods and services. The GST bill was passed in Rajya Sabha on 6th April 2017 and implemented countrywide from July 1, 2017.
In this debate on GST bills, if we consider India’s economy, we can find that today India is one of the fastest-growing countries in the world. So it was necessary to implement a simple and uniform tax structure across business and industry to give a transparent picture of the tax collection system for better implementation.
There can be a lot of debate on GST bills, but there is no doubt that it has brought a huge change in the economic front as far as India is concerned. Let’s have a look at the advantages associated with the implementation of GST. The first and foremost advantage of GST is the elimination of a bundle of taxes like VAT, service tax, Octroi, etc. prevailed earlier and replaced by one single tax system. This has removed the cascading effect of various taxes as applicable to goods and services.
Another advantage is that all the goods and services produced in the country will be treated in the same manner with a more uniform pattern of tax application.
Again due to GST, equality is maintained in all types of trades be it big or small. GST is applicable in dual ways – central (CGST) and state level (SGST). GST is applicable at the point of consumption and not at the point of origin like previous taxes. Therefore GST is applied in the state where goods and services are consumed but not in a state where they are produced.
For a common man, GST applicability means instead of multiple charging of taxes on products, only one tax is levied which in turn helps to control price rise in goods and services.
The debate on GST bills highlights that reduction in prices may increase demand for goods and services. Consequently, supply has to go up to meet the demand. To address the requirement of more supply, more employment is likely to happen. On the other hand, an increase in production leads to an increase in the gross domestic product (GDP) which is a favorable indication of a growing economy.
The manufacturing sector will be more competitive as an aftereffect of GST application due to the absence of a complex tax structure and fewer logistics costs. This would be an advantage for both manufacturer and consumer.
If we think about the tax revenue from GST by the state and central government, the replacement of multiple taxes by single tax makes product demand increase, and accordingly, tax revenue also increases.
As the country will follow one tax concept, there will be no unhealthy competition between states. This will be beneficial for interstate trading.
In the debate on GST bills, a general view that is expressed across all businesses that GST has reduced complications in filing tax returns as there are no multiple taxes. Tax compliance and documentation become easier. The process of tax payment and refund becomes simple and hustle-free. The system becomes more efficient and there are fewer chances of tax evasion or corrupt practices.
For medium and small industries which were earlier totally dependent on tax experts for documentation and return filing, find themselves in a better position due to the simplified system. Businesses having a turnover below 1.5 crores have the facility for quarterly return filing option. Small businesses having turnover of 20 lakhs to 75 lakhs can avail the benefit of lower taxes through the composition scheme. This has brought down the tax burden on small businesses.
The debate on GST bills also brings another important plus point for entrepreneurs as they don’t require having various registrations like VAT, service tax, excise, etc. for their start-ups. Also, the entire process of GST (from registration to tax filing) has been made online with simple procedures, which is an added advantage.
Being the biggest tax reforms in India, GST bills allow or give the best opportunities to the growth of small and medium enterprises (SMEs) with some relaxation. The debate on GST bills always highlights the anticipation among various sectors about the outcome but it can be said that introduction of GST has brought a huge boost in the economic growth in India. The objectives behind the GST bills implementation have been achieved more or less successfully.
In The debate on GST bills, a question should arise that how a customer can receive the benefits of GST to the maximum extent? There are several ways in which these benefits are made available.
As a consumer one can have the possession of a tax invoice issued by a registered supplier as the supplier or service provider is bound to include the taxes for goods or services, which will be reflected in their returns. The GST is levied at each process of production and is meant to be refunded at various stages. It can be said with more surety that taxes charged are paid by the supplier or service provider.
So, I will conclude my points on the debate on GST bills by saying that GST bills have several advantages for consumers, suppliers as well as the government. The GST bill is considered a revolutionary step in the tax structure and economic growth of India.
FAQ’s on Debate on GST Bills
Question 1.
How a supplier can claim a refund of GST as levied at each stage?
Answer:
The supplier at each stage is permitted for claim set-off through an input tax credit mechanism, which permits set-off against tax paid during purchase in the further process of supply of goods and services.
Question 2.
What is the tax mechanism for interstate transactions?
Answer:
All interstate supplies of goods and services are taxed under the integrated GST (IGST) mechanism.
Question 3.
Why is the dual GST system required in India?
Answer:
The dual GST (CGST and SGST) confirms the constitutional requirements of dual responsibility by both central and state governments to collect taxes.
Question 4.
What is the biggest gain for the consumer which is aimed at GST bills?
Answer:
The biggest gain would be a reduction in the overall tax burden on goods.
Question 5.
How does GST enhance competitiveness in the manufacturing business?
Answer:
GST reduces the cascading effect of multiple taxes and high logistics cost thereby making manufacturing more competitive for the supply of goods.