Myths about GST | Fusion - WeRIndia

Myths about GST

Myths about GST

The Goods and Services Tax, or GST, is now widely known as the most revolutionary act of the Indian government on the economy of the nation. However, due to this large impact on the entire country, many rumors and myths have sprung up about the nature of the GST.

Therefore, because of its massive impact, it is important to know the reality about this tax so that everyone is clear of its effects on Indian goods and services. These are seven of the most prominently circulating myths about the GST, followed by the facts about the tax that contradict them:

·     One myth states that GST implements a singular tax regime, replacing all other taxes on goods and services in the country. However, the fact is that some things are still outside the reach of GST, such as petroleum, diesel, and alcohol.

·     Another myth says that small businesses will suffer under this tax because of internet requirements. In reality, small shops can do manual billing if they desire, and the monthly return filing can be done from any cyber outlet.

·     Another myth says that for each good or service covered by the GST, there is now no other tax. However, in reality, it only takes away any federal and state taxes; ones run by local governments are still in place.

·     One myth says that prices will go up under the GST because the rates of taxes have raised from 18% to 28%. Factually, the GST rates only appear to be higher because now, consumers can see the entirety of the tax; the GST will actually lower the prices of goods and services when implemented.

·     Another myth states that the GST will cause economic growth entirely on its own. In truth, the GST can only aid economic growth by organizing the taxes on goods and services, but the growth of the Indian economy itself must come from many factors besides this one tax.

·     One myth states that businesses alone will try to take away the benefits of the GST, but governments will leave it alone. In reality, some governments are trying to do this as well, such as the Maharashtra government raising vehicle registration by 2% after the implementation of the GST.

·     Lastly, one myth says that the GST will be charged twice when using a credit card. However, in fact, there is no additional tax on payments done by credit cards; the confusion likely arose because there is an additional tax on any convenience charges done by companies.

Image credit: Image by Mary Pahlke from Pixabay (Free for commercial use)

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