#1 peration between states will lea von gsnoopy520 12.08.2019 08:03

The Goods and Services Tax (GST) which will be introduced from July 1st Kenny Golladay Womens Jersey , 2017 is the biggest tax reform since independence. As a destination based tax that replaces multiple taxes, the success of GST for India lies in its implementation. In its recently published report on state finances for 2016-17, the Reserve Bank of India calls GST a game changer.

The central bank states that GST in effect puts in place an effective and efficient regime for the collection of indirect taxes that will have a significant impact on state finances in the medium term for several reasons.

Here is a summation of why RBI thinks GST will prove to be a gamechanger:

nue expansion for states
According to the RBI report Jarrad Davis Womens Jersey , states that are currently reeling under an expenditure burden due to administrative expenses, pension liabilities and interest obligation could stay on the path of fiscal consolidation by implementing GST. It will lead to a definite revenue expansion over the medium to long run.

er co-operation between centre and states
Since GST is essentially a destination based tax, it would lead to better co-operation between the central and the state governments with regards to decision making on issues concerning tax rates and exemptions and categorising various goods and services under various tax slabs.

ease in the shareable pool of resources
Greater coordination and co-operation between states will lead to better understanding and the implementation of GST for businesses. This in turn will lead to an increase in the shared pool of resources and result in better allocation to states as per their needs. These factors cumulatively will lead to a significant impact on state finances in the long run.

ovement in fiscal health
GST tax India

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