GST Impact GDP(Gross Domestic Product) of India - PowerPoint PPT Presentation

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GST Impact GDP(Gross Domestic Product) of India

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Gross domestic product (GDP) is an economic measure of the market value of all last goods and services produced in a time period (quarterly or yearly). According to the mentioned information, Here are describe some basic concepts of GST and GDP, GST Impact GDP of India and Positive Impact of GDP, Negative Impact on GDP etc. – PowerPoint PPT presentation

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Title: GST Impact GDP(Gross Domestic Product) of India


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How GST Impact GDP(Gross Domestic Product) of
India?
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GST(Good and Services Tax)
  • GST describes for Good and Services Tax which is
    an essential regime demanding in India.
  • It is the biggest indirect tax reform since
    independence.
  • It will be levied when a consumer will purchase a
    good or a service.
  • GST is a single indirect tax that combines many
    indirect taxes as Service tax, Central Excise
    tax, customs tax, VAT tax etc.
  • The GST Bill will create a single market for more
    than a dozen state levies.?

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GDP(Gross Domestic Product)
  • Gross domestic product (GDP) is an economic
    measure of the market value of all last goods and
    services produced in a time period (quarterly or
    yearly).
  • Titular GDP estimates are generally used to
    determine the economic performance of whole
    country or a particular sector, just to make
    international comparisons.
  • Titular GDP per capita does not reflect
    differences in the price of living and the
    inflation rates of the countries therefore using
    a GDP PPP per capita basis is arguably more
    useful when comparing differences in living
    standards between nations.

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GST Impact GDP of India
  • The GST will bring about a significant change in
    the tax system by redistributing the burden of
    taxation equitably between manufacturing and
    services.
  • The Finance Commission had commissioned a study
    by NCAER to assess its effect on GDP growth and
    exports.
  • The study explores the effect of GST on growth
    through direct cost reduction as well as cost
    reduction of capital inputs.
  • Prefatory results indicate that the growth in GDP
    can be between 2-2.5 with the implementation of
    a well-designed GST. The increase in exports can
    be between 10-14.

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Positive Impact of GDP
  • There will be single tax system for all other
    Taxes such as VAT,Services Tax,Excise duty,CST
    etc., which will make a unified market in terms
    of tax implementation and the transaction of
    goods and services will be seamless across the
    states.
  • After GST implementation the export of goods and
    services will become competitive because of a
    null impact of cascading effects of taxes on
    goods and products.
  • GST will be more transparent in comparison to the
    existing law provision so it will generate more
    revenue to the Government and will be more
    effective in reducing corruption at the same
    time.

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Negative Impact on GDP
  • As the proposed GST rate is 18 which is more
    than current service tax rate i.e. 15 (including
    cess), so the services will become costlier and
    it will lead to inflation for a short time
    period.
  • As we know Real Estate also plays an most
    important role in Indian economy but some
    economists thinks that GST will impact the Real
    Estate business negatively as it will add up the
    additional 8-10 percent to the cost and detract
    the demand about 12 percent.
  • to be continued

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  • GST will applicable in the form of IGST, CGST AND
    SGST on the Center and State Government, but some
    economists say that there is nothing new in the
    form of GST and will replace Central Excise, VAT,
    CST, Service Tax etc.
  • Despite having some elements which are being
    expected to affect the economy adversely there
    are also some factors which are being speculated
    to make an positive impact on the economical
    conditions of the country.
  • READ MORE _at_ GST IMPACT GDP OF INDIA

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