How GST will help in curbing tax evasion
GST is a revolutionary tax reform and will bring much of the informal sector into the formal sector, as honest people will have nothing to fear from the new tax regime, but “the dishonest will be made to pay”.
The effects of GST would be mostly positive, such as increase in GDP growth rate, yeah agreed that now a days GDP growth rate is going down but this doesn’t mean that it will be in same direction, such decrease in growth rate is due to proper implementation of GST and once its get implemented properly then all the businees will come back on its own track and market will run smoothly again.
Further goods becoming cheaper because the possibility of inflation going up marginally could not be ruled out, as in GST, everything is online which means we have “Transparency” & “Accountability” in the business, which help in curbing tax evasion.
And the most important part is that instead of dealing with so many government agencies, now we have only one agency which is GST to deal with and totally e-based agency, no face-to-face interaction which reduced the corruption too.