scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

The Impact of Gst On The Spending Pattern Of Students From The Faculty Of Accountancy, UiTM Puncak Alam, Selangor

2016 ◽  
Vol 2 (1) ◽  
pp. 14
Author(s):  
Nadiah Abd Hamid ◽  
Nurul Mardhiah Harun ◽  
Bedah Ahmad ◽  
Mastora Yahya
Keyword(s):  
End Users ◽  
Tax System ◽  
Tax Rate ◽  
Income Levels ◽  
Goods And Services ◽  
Revenue Collection ◽  
The Government ◽  
The Impact

The implementation of GST in Malaysia as of 1st April 2015, which replaced the current Sales and Service Tax (SST) is viewed as a more efficient tax to manage and to generate greater revenue collection for the government. This multi-tiered tax rate of 6 percent is finally borne by the end users who consumed the goods and services regardless of their income levels. As a result, even non-income earners such as students are inevitably bearing the rising price of their consumed goods and services. This study aimed to investigate the level of GST knowledge among the final year students in the Faculty of Accountancy, UiTM Puncak Alam. The students’ knowledge andperception on issues related to GST implementation were found to have certain impacts on their spending pattern. Evidently, the findings revealed that students who have much information about GST implementation and in cases where they perceived that GST is an unfair and unequitable tax system, both situations are highly likely to have significant effects on their spending trend.

scholarly journals Progressive Taxation versus Progressive Targeted Transfers in the Design of a Sustainable Value Added Tax System

2021 ◽  
Vol 13 (20) ◽  
pp. 11165
Author(s):  
Zhila Abshari ◽  
Glenn P. Jenkins ◽  
Chun-Yan Kuo ◽  
Mostafa Shahee
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Transfer Scheme ◽  
Tax System ◽  
Personnel Costs ◽  
Goods And Services ◽  
Poor Households ◽  
The Government ◽  
The Impact ◽  
Over Time

Value added tax (VAT) has proven to be the most stable and revenue productive of all components of the tax system. However, for such a tax system to be policy sustainable over time, taxpayers must consider it fair, and it must be viewed by the National Treasury to be productive in terms of raising substantial revenue and administratively feasible by the VAT-implementing agency. The VAT system in Belize has been a highly productive component of the revenue system, and it was designed to be progressive, but in arriving at this position, over 40% of the personnel of VAT tax administration are engaged in processing tax refunds to promote progressivity and to fight against the fraud that such a refund system incubates. This is an unsustainable position for any tax system to remain intact over time. This paper evaluates the attempt by the government of Belize to introduce progressivity into their single-rate VAT through zero rating and exemption from taxation of many goods and services that are major expenditure items of poor households. The distributional impacts are measured by a tax reform that eliminates all zero ratings except for exports and a few exemptions. By eliminating zero-rated items and significantly reducing the number of exempt items, the impact of the reform adds a regressive element, although overall, the VAT system remains progressive. However, 75% of the revenues raised by this reform would be paid by the top 40% of the income distribution. The increased revenues could finance an expansion of an existing transfer scheme that exclusively targets poor households. In addition, reforms would eliminate at least 40% of the personnel costs of administering the current VAT system.

scholarly journals Value Added Tax & Export: the Case of Selected Countries around the World

2011 ◽  
Vol 2 (6) ◽  
pp. 298-305
Author(s):  
Ahmad Jafari Samimi
Keyword(s):  
Value Added ◽  
Statistical Test ◽  
Annual Growth ◽  
Value Added Tax ◽  
Tax System ◽  
Goods And Services ◽  
The World ◽  
Before And After ◽  
The Impact ◽  
Do So

The purpose of the present paper is to compare the impact of implementing Value Added Tax on Export of goods and services in selected countries. In this paper, we used four different indices for export; export of goods and services, export of goods and services (BOP), export of goods and services (annual % growth), export of goods and services (% of GDP) to investigate the sensitivity to different definitions .To do so, study concentrated on a sample of 140 countries that have applied Value Added Tax in their tax system from 1990 to 2008. Findings of the study based on Mean Difference Statistical Test in a two threeyear periods before and after introduction of VAT. In general, the results show that, in different indices, the impact of VAT on export is positive. Therefore, it is suggested that other countries have not yet introduced the VAT to reform their tax system by introducing the VAT.

scholarly journals Pros and cons of gst

2017 ◽  
Vol 7 (2) ◽  
pp. 208-213
Author(s):  
ARULRAJ S ◽  
KADIRVELU S
Keyword(s):  
State Government ◽  
Central Government ◽  
Value Added ◽  
Goods And Services ◽  
Pros And Cons ◽  
Service Sectors ◽  
The Government ◽  
The Impact

India is currently going through major reforms in its overall economic sectors.GST is one such kind of great reform. GST is unified indirect tax across the country on the Goods and Services. In the earlier system of Indirect Tax, the tax is levied at each stage separately by the Central Government and State Government at different rates, on the full value of goods as well as the services. But in this GST system, tax will be levied only the value added at each stage. So the government states that this GST is ―one India one Tax‖.This paper focuses on the concept, the benefits which the country will accrue from GST, the impact of GST on manufacturing, entertainment and Service Sectors.

scholarly journals Impact of Value Added Tax to Enugu’s Economy

2021 ◽  
Vol 8 (11) ◽  
pp. 278-287
Author(s):  
MARIA LUISA GONZALES ◽  
FRIDAY ODE
Keyword(s):  
Value Added ◽  
The Philippines ◽  
Tax Revenue ◽  
Business Organizations ◽  
Value Added Tax ◽  
Goods And Services ◽  
Descriptive Research ◽  
Significant Relationships ◽  
The Government ◽  
The Impact

ABSTRACT           Value-added tax is everywhere; it is in the most of goods and services we purchase. Take for instance; when we go to the salon to get our hair done, when we gas up our car, vat is also included in what we pay.  In the Philippines, the value-added tax is a form of sales tax. It is a tax on the consumption levied on the sale, barter exchange, or lease of goods, properties, and services in the Philippines, and on importation of goods into the country, it is an indirect tax that may be shifted or passed into the buyer transferring lease of goods, properties or services. While in Nigeria, VAT is a Federal Government Tax that is administered using the existing machinery of the Federal Inland Revenue Services (FIRS). This study assessed the impact of value-added tax on Enugu Nigeria’s Economy, specifically to Government, Business Organizations, and Consumers, the problems identified, significant relationships, and the solutions recommended. The findings revealed that VAT has a significant impact on business organizations and consumers but positively on the part of the government. Recommendation for the improvement is for the consumer with low average earnings should be exempted in paying the VAT provided however, criteria must be set to exempt them in VAT. Keyword: Social Sciences, Impact, Value added Tax, Revenue, descriptive research design, Philippines

scholarly journals Inter-governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

2020 ◽  
Vol 5 (1) ◽  
pp. 74-102
Author(s):  
Sacchidananda Mukherjee
Keyword(s):  
Fiscal Policy ◽  
Value Added ◽  
State Governments ◽  
Consumption Tax ◽  
Tax System ◽  
Goods And Services ◽  
Fiscal Transfers ◽  
Fiscal Management ◽  
Revenue Collection ◽  
The Impact

A comprehensive multistage Value Added Tax (VAT) system, namely Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax bases, and it is a dual VAT system with concurrent taxation power to Union and State governments. It was envisaged that removal of cascading of taxes and enshrining destination based consumption tax system under GST will encourage investment and improve ease-of-doing business in India. Though it is not right time to comment on success or failure of Indian GST system unless the tax system stabilises, so far revenue mobilisation from GST is not encouraging. The shortfall in GST collection has been acknowledged in the ‘Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement’ of the Union Budget 2019–2020. The genesis of revenue shortfall may be design and structural in nature and/or compliance and tax administration related. However, the uncertainty surrounding GST revenue collection is an issue which needs an in-depth assessment for fiscal management of Union and State governments. The impact of revenue uncertainty will not be restricted to Union finances alone; it will spill over to state finances through inter-governmental fiscal transfers. Therefore, depending on seriousness of the uncertainties associated with GST revenue collection, devising an inter-governmental fiscal transfer framework may be a challenging task for the Fifteenth Finance Commission. Given the information available in the public domain, this article attempts to explore possible causes of revenue shortfall and assess possible impacts of revenue shortfall on Union and State finances.

scholarly journals Increase of tax for added value

2018 ◽  
pp. 31-36 ◽  
Author(s):  
A. V. Zemlyakova
Keyword(s):  
National Development ◽  
Value Added ◽  
Added Value ◽  
Tax Burden ◽  
Real Wages ◽  
Tax Rate ◽  
Goods And Services ◽  
Development Goals ◽  
The Russian Federation ◽  
The Government

The deputies of the State Duma of the Russian Federation approved in the first reading the government draft law, which makes it possible to raise the value-added tax rate from 18% to 20% from January 2019. Deputies believe that it’s time for businesses to pay for the lowered rate, which has been in effect since 2004. True, in today’s environment, an increase in VAT may slow the growth of the economy and “drop” GDP by 0.4%. The increase in the tax burden is required to fulfill the national development goals, which are defined in the “May decree”. Measures should bring in the budget 600-630 billion rubles of additional revenues per year. At the same time, the preferential rate of 10% and 0%, which is valid for a number of industries, is not planned to be changed. Thus, business related to export, the increase in VAT will not affect. The tax burden on the most important social goods and services will remain unchanged (it concerns food products, goods for children, medical services, medicines). The tax system needs to be tune-up, after which the government does not plan to make changes for six years. The VAT increase is hi to the surge in inflation – in 2019 it will exceed the Central Bank’s target of 4%. The growth of real wages will be less than 1%.

scholarly journals GST: A Tax Reform for Sustainability of Indian Handicrafts

2019 ◽  
Vol 7 (1) ◽  
pp. 354-359
Author(s):  
Kritika Tekwani ◽  
Rinku Raghuvanshi
Keyword(s):  
Sustainable Development ◽  
Tax Reform ◽  
Value Added ◽  
Secondary Data ◽  
Published Data ◽  
Tax System ◽  
The Sustainable Development ◽  
Goods And Services ◽  
The Government

Purpose of the study: Taxation is one of a tool, which helps the Government for the achievement of the goal of sustainable development for every sector including handicraft. The objectives of this study are to know about Goods and Services Tax & its inferences on sustainable development of Indian handicrafts and to identify the role of GST as tax reform in the sustainable development of handicrafts sector in India. The Indian handicraft is economically important and it has more potential for exports. This sector places a major role in the Indian economy. Methodology:  The Descriptive method of research has been used to gather information about the existing conditions of GST and Handicraft sector of India. This study is based on secondary data. The data has been taken from different journals, books, magazines, websites, and published data from government institutions. This study is explanatory in nature. The collected data from different sources has been reviewed and data relevant to the handicraft sector further analyzed. The researcher concluded that how GST is helping Indian handicraft sector for sustainable development. Main Findings: GST brought transparency in the tax system and it also eliminated the multiple taxes, which ultimately increases the final prices. This study revealed that GST would make Indian handicrafts more competitive in the domestic and foreign markets. GST is fiscal tax reform which helps in the sustainable development of Indian handicrafts. This research study found that the handicraft sector of India became more organized, centralized, and regulated after the implementation of Goods and Services Tax. The implication of the study: GST implemented on July 01, 2017 with the aim of simplification of the tax system, fiscal structure, United Indian Market, and sustainable development in India. It is a comprehensive value-added tax which merged different taxes including VAT, service tax, surcharges, CST, etc. This study can be useful for future researchers, traders, and exporters to know the implication of GST in the handicraft sector. Traders and exporters can get knowledge about the GST, tax rates, and exports under LUT/ bond. This study may be benefited to the Government for further development in GST as per the findings of this study. Novelty/Originality of this study: GST is new tax reform in India, only a few studies have been done on it. As per the researcher ’ s best knowledge few studies have been carried out on GST and handicraft sector, but none of the study is carried out on this topic. This study highlights the unrevealed facts and figures about the role of GST in the sustainable development of the handicraft sector.

Research on the Impact of Resource Tax Reform upon the Development in West China

2014 ◽  
Vol 962-965 ◽  
pp. 1813-1817
Author(s):  
En Lai Bai
Keyword(s):  
Economic Growth ◽  
Tax Reform ◽  
Industrial Structure ◽  
Ecological Environment ◽  
Tax System ◽  
West China ◽  
Tax Rate ◽  
Resource Taxation ◽  
Sustainable Economic Growth ◽  
The Impact

The economy has been continuously growing along with constant changes and innovations in the resource tax system. Through the background and implication of resource tax reform as well as the mechanism of how such reform affects West China, we can find out the impact of such reform upon sustainable economic growth, the ecological environment and all sectors in West China. In order to further optimizing and upgrading the industrial structure in West China, in my opinion, we should take the following five countermeasures: 1) The scope of taxation is to be enlarged; 2) The tax rate is to be increased step by step; 3) The resource taxation mechanisms are to be integrated and simplified; 4) Preferential taxation polices are to be improved in West China; 5) Auxiliary reforms are to be carried out for the resource taxation.

scholarly journals Whether Fiscal Stance or Monetary Policy is Effective for Economic Growth in Case of South Asian Countries?

2008 ◽  
Vol 47 (4II) ◽  
pp. 791-799 ◽  
Author(s):  
Shahid Ali ◽  
Somia Irum ◽  
Asghar Ali
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Asian Countries ◽  
Policy Mix ◽  
Monetary Policies ◽  
Tax Rate ◽  
The Government ◽  
The Impact ◽  
Fiscal And Monetary Policy

Monetary policy and fiscal policy are sister strategies that can be used alone and in combination to direct the economic goals. In the literature relative efficacy of fiscal and monetary policy has been studied extensively. Friedman and Meiselman (1963), Ansari (1996), Reynolds (2000, 2001), Chari, et al. (1991, 1998), Schmitt and Uribe (2001a), Shapiro and Watson (1988), Blanchard and Perroti (1996), Christiano, et al. (1996), Chari and Kehoe (1998), Kim (1997), Chowdhury (1986, 1988), Chowdhury, et al. (1986), Weeks (1999), Feldstein (2002) and Cardia (1991) have examined the impact of fiscal and monetary policies on various economic aggregates. However, the bulk of theoretical and empirical research has not reached on conclusion concerning the relative power of fiscal and monetary policy to effect economic growth. Some researchers find support for the monetarist view, which suggests that monetary policy generally has a greater impact on economic growth and dominates fiscal policy in terms of its impact on investment and growth. [Friedman and Meiselman (1963); Ajaye (1974); Elliot (1975); Batten and Hafer (1983)], while other argued that fiscal stimulates are crucial for economic growth. [Chowdhury (1986); Olaloye and Ikhide (1995)], On the other hand, according to Cardia (1991) macroeconomic activities are largely explained by some other variables. The experiment of 1970s clearly demonstrates that a policy mix produced only stagflation. Some economist took keen interest in money by combining Keynesian neoclassical mixture which is called the “funnel” theory by James Tobin. The argument was that tax rate and money growth simultaneously leads to stagflation thus the Government could choose either fiscal or monetary policy stimulus which will enhance growth. [Reynolds (2001)].

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