Advertisements
Advertisements
Question
How good is the system of G.S.T as compared to the old tax system?
Advertisements
Solution
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.
APPEARS IN
RELATED QUESTIONS
Fiscal deficit equals :
(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.
What do you understand by G.S.T?
The primary deficit in a government budget is ______.
Which of the following statement is true?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
______ in the budget is an important measure of deficit.
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.
______ are the transactions between the residents of two countries that take place due to consideration of profit.
______ are those transactions that are undertaken to cover deficit or surplus in autonomous transactions.
If India exports goods worth ₹20 crores and imports goods worth ₹30 crores, it will have a ______
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 |
 |
 |
On the basis of the given information, calculate the value of:
- Fiscal deficit
- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
