English Typing Test

Thevotersmustbeinformedvotersandnotallreadeconomics.Therefore, fromacitizen'sperspective,itisimportanttounderstandsuchcriticalpublic policies.Itiswellunderstoodbyall,thatthe122ndConstitutionalAmendmentBill iscertainlythemostsoughtaftersubjectintheIndianeconomy-atleastasofdate. Nonetheless,beforemovingfurther,itisimportanttounderstandthe basicdifferencesbetweenGSTandVAT.AccordingtoMukhopadhyay(20141),GST canbeseenasaVATincludingservicetax.However,strictlyspeaking,ifservicetax isexcluded,itisonlyVAT.Addedtothis,forprivate-sectorofcorporates,the turnovertaxwithaclearcreditofinputtaxissynonymouswithaVAT.Therefore, GSTcanbeseenasareformedVATregimeincludingservicetax. ItisimportanttounderstandatthisjuncturethatVATisnotaprogressive tax,ratheritisaproportionaltaxwhereinthesamerateisappliedacrossall irrespectiveoftheincomeclassofthetaxpayers.Naturally,ithasnothingtodowith socialJusticeorredistributiveobjectives.Havingsaidso,itisalsotruethat,post- GSTimplementationtherewillbeasingle,comprehensivevalue-addedtaxonboth goodsandserviceswhichwillbeleviedateverystageofaformaltransaction.Since GSTwillbeleviedonlyonthevalue-addedduringaparticularstageofproduction sotheburdenoftaxationwillbeshiftedtothefinalconsumer.Nottoworryabout themagnitudeoftheburdenbecausethefinalconsumerneednotbearmuchheat asthetaxespaidatearlierstageswillbesetoff.Also,itwillminimizethecomplexity thatarousedduetothemultiplicityoftaxes,broadenthetaxbaseforindirecttaxes, andthusisexpectedtomaketaxevasionlessattractive.
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