MORE / #General Awareness

October 24, 2017 @ 11:42 AM

October 24, 2017 @ 11:42 AM

K. J. Somaiya Institute of Management Studies and Research, Mumbai

9 Easy Steps to register for SIMSR (Infographic)

Download Now

GST: A Boon or Bane

GST

MBA aspirants must be updated with General Awareness on current affairs.  General Awareness topics with analytically drawn conclusions will benefit you in XATIIFTNMATSNAP ,CMATMAT, and later in Post exams screening Tests like  WATGD & PI , Essay writing.

Read Current Affairs Topic: GST: A Boon or Bane

The midnight of July 1, 2017, was a historic moment in the Indian economic history when the multitudes of indirect taxes were merged into one Goods and Service tax (GST). The earlier date conceived for the implementation of GST was April 1, 2010 but the lack of consensus among the states led to the delay of more than seven years in implementations. With the GST, India has been unified into a one common market.

Expected Benefits of GST

The government launched GST with much fanfare expecting following benefits to accrue:

  • GST would eliminate the cascading effect of taxes in the production and distribution of supply chain, which would eventually improve the competitiveness and bring down the prices.
  • Fall in prices will assist in bringing down the inflation rate.
  • With the increased compliance and widening of base, GST would increase the revenue.
  • GST regime will introduce transparency in the indirect taxes framework.
  • GST on exported goods and services will be refunded. It was not possible in the erstwhile regime due to the fragmented nature of indirect taxes between the centre and states.  
  • GST will synergise the indirect tax laws across the states.

Merely 100 days have passed since the implementation of GST and it is too early to predict its real impact on the economy and to decide whether it is a boon or bane for the people of the country. However, as expected, a wave of discontent is being felt among the various sections of the society, which are being called as teething troubles by the experts. Nevertheless, as the elections in Gujarat are due later this year, government tweaked some rules under GST for the cause of small businesses.

Some of the so called teething troubles faced by the businesses during the first hundred days are as under:

  • The infrastructure placed by the government for the filing of GST was not adequate to handle the filing of tax returns. The Goods and Services Tax Network (GSTN) portal often got clogged with multiple applications and for small businesses which lacks technology, GST increased the cost of compliance. 
  • Exporters were also hit to the tune of INR650 billion due to the pending refunds. The locking up of working capital in the form of GST affected the competitiveness of exporters.
  • Ambiguities on input tax credit on input services related to immovable property also created confusion. For instance if a business traveller will get refund for his stay in hotel only if hotel is located in the same state where the company is registered. If hotel is located in another state, there will be no refund on input tax credit.
  • In the erstwhile regime, several companies have announced benefits to the businesses in the form VAT exemption. There is no such provision under GST.
  • During the months preceding the GST implementation, many businesses tried to de-stock the inventory which resulted in the business activity eventually impacting the GDP growth numbers.
  • Because of the initial problems faced by the businesses, the Business Confidence Index dropped by 13.3 basis points to 72.1 in July 2017 as compared to July 2016.

The initial hiccups witnessed by the industry after GST implementation was expected by the government as well as industry itself. The tweaking of GST policy will continue for a year or so to tackle the many unforeseen challenges emerging from the switchover. Although government claimed that the so called teething troubles will disappear after two months experts believe that businesses will continue to face the hurdles till the end of current financial year i.e. March 31, 2018. 

Malaysia and Australia too witnessed decline in growth and similar hiccups after implementing the GST. Even the initial GST collection of INR900 billion reported from the first two months is not real and may drop when the real figure emerges in February/ March 2018. The concrete effects of GST are expected to emerge only after a full financial year is passed that is after March 2019. Till then, it is unjustifiable to call GST either an unprecedented success or an utter failure.

Read 500 + General Awareness Topics

Stay informed, Stay ahead and stay inspired with MBA Rendezvous

Crucial Dates, You Should not Miss

Manav Rachna International Institute
of Research

Admissions Open for all MBA programme at Manav Rachna International Institute of
Research and Studies.
CII School of Logistics Amity University, Delhi and Mumbai
Admissions Open at CII School of Logistics Delhi and Mumbai campus, Apply Now!
GITAM School of International Business, Visakhapatnam
Admissions open for MBA programmes at GITAM. Application Deadline is February 20, 2018
XIME
Application Last Date for Online Submission - February 25, 2018
TAPMI, Manipal
Admission Application closes on January 16, 2018 for 2018-20
BIMTECH, Greater Noida
Admissions open at BIMTECH, Greater Noida
Lal Bahadur Shastri Institute of Management
Admissions are Open at LBSIM, Delhi. Apply Now !
FORE School of Management
Apply for PGDM & PGDM-IB Programmes. Application Deadline is January 18, 2018.
MDI Murshidabad
Applications for PGPM 2018-20 at MDI Murshidabad are open
NIRMA
Last Date to Apply for MBA (Full Time) Programme at NIRMA is January 29, 2018
Institute of Public Enterprise, Hyderabad
Last Date to Apply for IPE, Hyderabad is 21st January, 2018
IMI New Delhi
Admissions Reopened for PGDM Last Date to Apply January 21, 2018
Application closes on February 12, 2018 for Executive PGDM at IMI
Institute of Rural Management Anand
IRMASAT will be conducted on February 4,2018, Apply Before January 20,2018
ICFAI Business School
Admissions Open at ICFAI Business School Apply Now!
K J Somaiya Institute of Management Studies & Research, Mumbai
Last date for Application is 31st Jan, 2018
SDMIMD Mysore
Application for PGDM 2018-20 at SDMIMD is open till February 28, 2018
img

Admission Open Now

Following Colleges are accepting applications.

INTERNATIONAL MANAGEMENT INSTITUTE

Admissions open for 2018-20

PGDM, PGDM (HRM), PGDM(B & FS), Executive PGDM

Apply Online
Get Connected with your Dream College  
Get Connected with your Dream College

Thank you

Get Connected with your Dream College
View More

Thank you