Pros of implementing GST are:1. GST reduces various indirect taxes running in the current regime, which will make the process of tax collection transparent and easy.
2. Some indirect taxes are again taxed on the tax account; this cascading effect is reduced with the implementation of GST, which would reduce the hidden costs of doing business.
3. It also fulfil the dream of making one nation one tax.
4. By implementing GST, inflation will be under control.
5. By making a common market, it will remove the state trade barrier.
6. GST will reduce operational costs, prices of production or services that will directly benefit the consumers.
7. It will let the work equitably divided between manufacturing and services.
8. With the implementation of single taxation system, there will be a firm a concrete taxation infrastructure, which will be transparent, and corruption less.
9. GST reduces the transaction costs of doing business, which improve the competitiveness for the trade and industry.
10. It decrease the cost of collection of tax revenues of the government and lead to higher revenue effectiveness.
Cons of implementing GST are:1. For GST, service tends to be more expensive.
2. People might hesitate to adapt the change for new tax system.
3. Businessmen will have to change their strategy.
4. For manufacturing state, there will be a loss of revenue.
5. For some retail products where the tax rate is only 4% for the GST, it will be costlier.
6. If the cascading effect benefits not passed to the consumers, businessmen can raise their profit margins.
7. GST may have a negative impact on retail market.
8. For GST, implementation tax burden will be higher for Small businesses in the manufacturing sectors.
9. Businesses will have to register in all the state; they are operate which increase the burden of compliance.
10. Inflation may increases initially.
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