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प्रश्न
How good is the system of G.S.T as compared to the old tax system?
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उत्तर
The system of G.S.T is good as compared to the old tax system in the following ways:
- Abolition of different tax structures - The implementation of GST resulted in the abolition of state-imposed taxes such as value-added tax, entry tax, octroi, and luxury tax as well as service tax, union excise duty, central sales tax (collected by states), and customs duty. Cess, resale, extra, and turnover taxes, among others, have all been abolished.
- Widening of tax bases - The GST has broadened governments' tax bases. Government administrative expenses have decreased as a result.
- The benefit of Input tax credit - Every stage, whether for the manufacturer, middleman or end user, is subject to the GST levy. The assessee benefits from an input tax credit side by side, which means he simply has to pay the difference between output tax and input tax. As a result, GST has eliminated the tax's cascading effect, following in the footsteps of VAT.
- Neutralization to process, business models, structure, and location - Because of the neutrality of the tax regime, GST is expected to improve economic development, efficiency, and sustainability.
- Because of the lessened effect of tariffs on numerous commodities, GST may contribute to an increase in exports, giving exporters an advantage over their competition in the worldwide market.
- Increased demand and production of goods and services - Because of the GST's lower production costs, manufacturing facilities would grow and there would be more demand for goods and services.
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संबंधित प्रश्न
Distinguish between revenue deficit and fiscal deficit.
Define fiscal deficit.
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
Explain the relation between government deficit and government debt.
What do you understand by G.S.T?
Answer the following question.
In the given figure, what does the gap 'KT' represent? State any two fiscal measures to correct the situation.
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is the formula for revenue deficit?
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case?
Which of the following factors necessitated the need for economic reforms?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Fiscal Deficit = Total Budget Expenditure - Total Budget Receipts (Net of borrowing)
Statement 2: Primary Deficit = Fiscal Deficit + Interest Payments.
What is relation between government deficit and government debt?
Which of the following statements are correct
Statement 1: Fiscal deficits are not necessarily inflationary; though, they are generally regarded as inflationary.
Statement 2: When the government expenditure increases and tax reduces, there is a government deficit and there will be a corresponding increase in the aggregate demand.
How do we get the primary deficit from the fiscal deficit?
Fiscal Deficit equals:
Identify which of the following statements is true.
The shape of average revenue curve in monopoly is ______
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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