All four bills of GST have been passed in Lok Sabha. GST is being considered as the biggest financial change in Indian Economy. Finance Minister Arun Jaitley termed it as revolutionary step for India. On the other hand, PM Modi said that the country will experience new laws on the occasion of Indian new year. GST will bring about following big changes in country’s economy:

1. When GST will be levied, entire nation would have one tax system. Till now some taxes were imposed by central government while some by state government.

2. State and Central government will levy goods and service taxes together. This would reduce prices of goods in the entire nation. According to Arun Jaitley, this would reduce the burden put by these taxes on public. Other than this, taxes have been increased on the goods like tobacco and alcohol which negatively impacts the health of people.

source

3. Finance minister Arun Jaitley said that its right to have different tax rates under GST. Now there will be different way of imposing tax on different goods, for example BMW and slippers will not have same criteria of tax implementation.

4. GST council has 32 territories governed by state and center. Under the process of constitution amendment if any state experiences loss because of this bill, the government will look after it. If any two states disagree on one tax rule then decision will be made on grounds of common polls. GST law will not involve Jammu and Kashmir.

5. As soon as GST will be implemented, the problem of fraud in tax system will be curbed. Indirect tax system will become more transparent.

source

6. After the the tax will be levied, the movement of goods and services in the nation will become easy. Cost of product will not have much variation from one place to another.

7. After this, supply capacity will be improved.

8. This new law will bring uniformity in taxes which is beneficial for customers. This will increase online transactions which would help in increasing the radius of tax payment. Honest tax payers will be benefited from this.

source

9. According to world bank GST law will help in increasing GDP rate by 2 percent which would improve country’s economy.

10. According to Finance Minister Arun Jaitley, government has set 0%, 5%, 12%, 18% and 28% tax slab. Main food products will have 0% tax whereas harmful consuming products and luxury products will have increased tax.

 

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