Friday 12 August 2016

what GST is in simple terms




GST has been called historic, a game-changer, a unifier. Everybody has welcomed GST with open arms, right from all opposition parties (barring AIADMK), to economic experts. Even the average common man now feels GST will improve his life.
But when you ask people what GST actually is, very few people may be able to explain. Most might know that it stands for Goods & Service Tax, but thats where the train stops. 

Let me explain GST in simple words :
Suppose it is your birthday

Your Neighbour friend asks for a chocolate and you give him one chocolate
Later after reaching school, security guard comes to know about your birthday and wishes you Happy Birthday and you give him one chocolate
Later in classroom teacher announces your birthday so you distribute one chocolate to each classmate.
Ultimately your neighbour who is also your classmate gets double chocolates.


Here
Birthday = Your business
Distributing chocolates = paying various existent taxes
Giving double chocolates to Neighbour = paying surcharge


Now what is GST?

It is like you are not authorised to distribute chocolates to everyone.
Simply deposit your chocolate bag to Principal and he will take care to distribute it further.
That means pay a central tax and forget everything else.


Why do some people oppose it?

People like your neighbour who is getting double chocolates is opposing it.
But overall GST is in benefit of all business class people.

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