If you have been following experts’ views on GST lately, then you must have comprehended the ways in in which Goods and Services tax can ensure major boost to the economy of the country. Several industry veterans have advocated for the implementation of GST by citing multiple advantages that it can bestow. In fact, experience from the past also enlighten us about the significance of shifting the compliance framework to automation, and that’s why the government has been paying enough attention to the GST framework. However, amidst all the benefits discussed on the social media platforms and news channels, we have not seen enough discussion on how will free movement of goods across India can help India save big!
As per the experts, free movement of goods will be a major force to reckon with in future, once GST take over. Owing to simplified GST regulations, it would become extremely feasible for businesses across each and every state in India to compete with their counterparts on the national scale. So far, the transportation of trucks (carrying multiple goods) involving two or more states was a big point of concern for all sorts of businesses. Truck drivers sued to complain that the police officers ate various check points harassed them extensively and demanded huge amount of money to allow the entry of trucks into a state or province. Sometimes, these processes took huge amount of time, and this was a major reason surrounding the delayed arrivals of trucks in any state. As per estimates from World Bank, the country had to bear huge financial losses due to the delays caused at check points across India. What was somewhat even more unfortunate was that legislative authorities did not pay the due attention to these delays, and Indian economy actually had to suffer owing to these delays. Therefore, the demand of the hour was to take farsighted actions in this regard.
So far, businesses were used to shedding off extra money just to ensure that the movement of their trucks and other transportation vehicles did not get hampered. This was obviously not a positive attribute of any developing economy as it had actually created enough room for corruption. On one hand, police officers and tax officials used to threaten drivers just to take some money. And on the other, businesses started enticing these officers by giving them some sorts of privileges. All these actually had a negative effect on the Indian economy. With new GST rules India, these sorts of ailments would be cured in an idyllic manner. Post GST rollout, states would be compelled to remove all sorts of barriers and check points. In fact, numerous states in India have willing initiated the process of getting over with check points. Once these check points would become things of past, it would help Indian economy save big. Moreover, it would be an ideal remedy to the corruption that exist in this domain. As no police officer would be allowed to ask for the entry tax and all, it would unquestionably pave way for faster movement of goods across India.
Although GST framework has been drafted efficiently, but the government must ensure that its implementation is not marred with any sort of unforeseen complications. If the views shared by leading economists are to be considered, then a minor loophole in implementation process can further cause massive chaos in the economy. Therefore, legislative authorities and administrative entities should ensure that stakeholders prepare adeptly for the new regime. Then only can we claim that the regime and free movement of goods have helped the Indian economy extensively.
In short, GST it would help the Indian economy save a lot. Thus, the forward-looking GST regulations India would indeed help Indian economy, along with fostering a more favorable business environment.