What is GST?
GST – Goods & Services Tax is all set to be one of the most impactful economic reforms to be implemented in last few decades and is already being labeled as a major social reform too.
What Is Wrong with The Current Tax System?
Though India is politically one country, economically it is fragmented. There are multiple taxes when there is commerce across state borders. Consequently, it increases costs for everyone and makes economic activity within India for Indians complicated.
Presently, taxes are of two types – Direct and indirect, which are levied either by the central government or the state government. Direct taxes, like your income tax, come under the central govt. And taxes levied on the manufacture of goods and providing services are called as indirect taxes, they are also levied by the central govt. Taxes on consumption are exclusively levied by the state government.
The issue with this system is that sometimes, a product may have multiple tax layers to it. Eg – consider a dress. It first needs to be manufactured before it is consumed. So the Centre levies a tax at the factory level and then the state levies a tax at the shop (VAT), just before it is consumed. On an average, excise duty is charged at 12% and VAT at 18%, that means an average consumer pays 26% in taxes. The resultant MRP is, therefore, a lot higher than the actual retail price.
GST is an indirect tax and will attempt to create a single market for goods by taking away the tax barriers between the various states.
Is GST Beneficial to Us?
Yes, we certainly feel so. As of now, the average consumer has very little visibility into how much of the price he pays for something is taken up by taxes. We do see the VAT in the bill, but before the product reached the shop, the center has levied an excise tax on it. With GST, taxes will be levied solely for consumption and is, therefore, expected to bring about more transparency. Also, there will be no more “tax on tax” system.
6 Reasons Why a Cashless Society is Here to Stay:
With the new cashless wave gaining momentum in India, societies all over are adopting various ways of doing their bit to forward this initiative. Here’s why everyone should go cashless starting from today –Firstly, to avoid this…
Track dues and payments automatically
Now, Indians will make payments for most purchases/liabilities online. Automatic withdrawal and payment from connected accounts are also an option. So, there are no dues pending at the end of every month and that gets ticked off your to-do list instantly, without even having to make a confirmation.
Cloud-based auto sync in real-time
All transactions are updated in books online and accounts are kept up-to-date after every transaction. Even people not so good at math will like this number game. Going cashless isn’t so bad after all.
No long queues to wait around in
Queues that move quickly are a crowd favorite. A place where personal presence is optional is looked forward to by everyone, not just by introverts. Anyone who can’t be at a particular place at a specific time would appreciate such a development.
Countrywide acceptance of this stance
This line of thinking will be eventually accepted and put into practice all over the nation. So, purchasing most things gets easier when done directly using an e-account.
Chances of robbery & theft are low
When there isn’t enough to rob, why would someone painstakingly make the effort to break in and steal? Traveling outstation also gets easier since staying connected with your funds becomes more flexible. This is a great move for tourists looking forward to exploring our country.
You can’t get lazier than swiping a card / pre-storing payment details just ONCE!
There will be no such thing as overusing your card, especially during difficult times. Swipe it for a purchase and you’re good to go. No more hunting for change in your pocket/wallet/bag / other nooks and crannies they managed to slip into. Added bonus: It just adds to your laziness. Now, who would want to go against that?
But, a move like this cannot be taken for granted. Regular monitoring of one’s own funds is the primary reason for this move to be able to thrive. You can check your account details online without the hassle of visiting the bank by visiting the website provided by it instead. The web and mobile applications made available by banks equip you with another option to go cashless.
Let’s make a conscious and informed effort towards having a cashless society.
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