As the government is leaving no stone unturned to complete the legislative formalities related to introduction of GST in India, the consumers and businesses in the nation are finding it difficult to understand how exactly this taxation system would work. From the perspective of consumers, they are somewhat concerned about whether GST would lead to inflation. On the other hand, businesses are really bothered about how their profit margin would actually be influenced during the GST era.
It is so true that the government so far has not undertaken any major initiative regarding how to create mass awareness regarding the GST Act. However, we must not forget the fact that several experts have claimed that GST would enable the country to accelerate its march towards comprehensive success in the long run as it would pave way for common national market.
Experts believe that GST would confer a wide range of benefits to Indians, including all the consumers, businesses, retailers, manufacturers, and suppliers. Leading economists and experts have claimed that the proposed GST in India would not only make it easier for businesses to perform various commercial activities, but would also increase the competition level in the market, which means reduced price — certainly a good news for all the consumers in the country. As per the Act, GST would be an amalgamation of numerous taxes that state and central governments levy and collect. With the implementation of this Act, businesses from various locations can actually compete with any player across the country, even if the target market is not within the boundary of the state of origin.
As a matter of fact, GST is primarily introduced in the country to enable free movement of goods and commodities across various states. As per GST Bill details, businesses would not have to pay any entry tax while performing inter-state commercial activities, and this would obviously be major value that GST ensures. Not only would it help each and every business across the country penetrate in their target markets easily, but would also allow them to meet all the compliance requirements quite efficiently.
Once GST is introduced in the country, even a small business firm operating in remote location would be able to compete with big enterprises in various states and cities. This would certainly make it more difficult for businesses to survive if their offerings are not of high quality. Additionally, the stiff competition among businesses, after the introduction of GST in India, would have an impact effect on the price of goods and services. This is certainly a major relief for end consumers in the country. Thus, it can be concluded that the common national market would benefit businesses and consumers simultaneously.