Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 4-1-2017 – Why taxes are expected to be lowered There is a general sentiment everywhere that India may witness a lower tax regime hence forth. This is the hope of citizens and businessmen as also being realized (off late) by the Government and tax administration. In direct taxes, the percentage of people contributing by way of income tax and corporate taxes is negligible, given the population of earning population. The number of tax payers as well as their contribution is low. Tax to GDP ratio is hovering around 10 percent since last fifteen years whereas in the world, many developed nations have such ratio ranging between 17-30 percent. India's GDP for FY 2016-17 is exp
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ream As an effect of demonetization, black money transactions would reduce substantially and more transaction would into tax net With about ₹ 15 lakh crore of demonetized notes now with banks, bank interest would be subject to tax base and tax collections will rise Better tracking of transactions due to low cash with public / businesses at large and more electronic payments With GST in offing in new future, most of the transactions would come under tax less and parallel economy will significantly shrink. Indirect tax reforms would substantially contribute to tax revenues. Huge amount of extravagant expenditure is expected to come down leading to its application in other productive options which would in turn lead to tax revenues. GST
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