Will Indian economy grow faster with reduced Goods and Services Tax (GST)?

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22 comments Page 1 of 3.

Manisha said:   3 years ago
Hi everybody,

Greetings of the day!

With reduced GST, various products will be affordable to all of us thus demand for products definitely increase in the market this increases the manufacturing of products in our country that will surely increase the economic growth of the country.

And also it benefits to human welfare as various lifesaving expensive drugs will be affordable for us.

By reducing GST government receives less amount in the form of a tax but it can be conquered by the huge demand for products. So no need to worry. It will definitely boost our economy.

Thanks a lot!

Riya said:   4 years ago
Reduced GST will encourage shoppers/consumers to shop in bulk because they won't have to worry about the tax rates. Back in the time of VAT, consumers didn't know about each layer of tax that was added in the whole process starting from production to sales, they were beware of it, so they didn't think much about the taxes. But today if they know the rates of GST which if high will not allow them to shop more. Reduced GST will help in increasing sales.

Prasanna said:   4 years ago
Hello friends.

I guess we are a little distracting from the topic actually the topic is not about the pros or cons of GST.

But about will the Indian economy grow with reduced GST.

In my view reducing GST will lead to a decrease in taxes which will obviously affect the economy in a bad way.

And there will be less money in the hands of the government for its work.

But reducing GST can be reduced in sectors which are important in terms of financial growth and the areas which are required necessarily for the welfare of people like important and costly medicines.

This move will not only improve the financial sector but also improve the welfare of people.

I also want to add one thing that GST is applied to only those businesses which have a high turnover.

Suchikanta karna said:   4 years ago
Hello friends,

I'm suchikanta.

As per my opinion, Yes, definitely. Reduction in GST on various goods and services will reduce the cost thus making the product affordable. These will lead to an increase in demand thus increasing production which in turn will make the economy grow faster. In november, government moved 270 or 280 items from the slab of 28% to 18%. These were mainly fmcg goods. After this step, fmcg sector in the country got a boost. Also, services availed in restaurants were charged 18% gst which was then reduced to 5%. This increased the number of people visiting restaurants.

Deeksha said:   5 years ago
Yes, as we all know the automobile sector crisis. This sector gives employment to 3 crore people in our country from which 3 lakh jobs are already gone with a prediction of almost 20 lakh more and one thing that they are constantly asking for is a reduction in GST.

Second is Parle G due to increased GST and less money in the hands of people they have also started cutting jobs.

As our economy is already not performing well currently. It is very important that we reduce GST in not all but maybe some sectors. It will definitely give some much-needed boost to the economy.

Patel said:   5 years ago
According to my view, Yes, GST will certainly give a boost to the Indian economy because it is going to make things simpler and it is going to add a large number of efficiently in business.

At the broad level if today you think of movement of goods from the place where the goods are manufactured to the goods are consumed now the goods are moving from northern part of the country to the southern part it takes around 22 days by truck if we abolish the central sales tax and entry and check post in various states it will only take 11 days so you can see how people will benefit in terms of logistic cost.

Ankush said:   5 years ago
Hello Everyone.

According to me, the GST in beneficial and good initiative for the country.

1) I agree that the poor people suffer a lot due to this, let me tell you one thing the design of GST is such that the taxation on daily product like wheat, rice is less as compared to other products so the point is poor people's first requirement is food and daily products and the GST rates are low on these products.

2) To get services from the government, governments need an avenue to do so GST that we pay is after-all for Country's development and for looking after the Crysis.

3) Before GST the taxation design was somewhat complex and was not easy to understand.

Before GST even I don't understand how much is a tax on this product or if I import this product then how much the tax will be, after GST everything looks refreshed and sorted.

Sravani said:   5 years ago
In my point view, it will better to reduce GST because with increasing of this GST, rich people is not suffering. Many poor and middle class families were suffering every item they have to pay with that GST amount.

And what the government done with that amount they construct a statue and they said that is the symbol of unity. I think that is not a fair. Instead of that the government can do many good things but never done. Like use for poor people food and students education.

So, what is the use of this GST. And day by day GST increasing. And if reduced GST many companies interested to develop some more industrials and IIT companies also for that unemployment will decrease in ou India.

Mounika said:   5 years ago
Yes, in my opinion, the reduced rates of goods and service tax will lead to economic growth in India, as because New companies will show interest in investing such less taxed goods and more demand goods in the market so that their payback period will less than investing in any other company, through which the Indian economy grows fast.

Sumanta Bhue said:   5 years ago
In my opinion, GST in India beneficial to the public as well as India government and boost the competitive economy of the country by the following ways:

1. Creation of unified national market.
2. Higher threshold for registration.
3. Composition scheme for Small Businesses.
4. Simple and easy online payment system.
5. Elimination of multiple taxes & double Taxation.
6. Boosts to make in India initiatives.
7. Increase in government revenue.

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