The Goods and service tax has an overall importance in the economic corridors, as such compatibility with the reformation and implementation is required at the most will. The delay is inevitable in this case as the reform is much bigger than assumed but the impact will certainly cause positive vibes throughout the nation.
Meanwhile, a new speculation has emerged that the current exemptions which come under the merit goods will likely to get extinct under the GST regime also, while the exemptions which come under the excise tax will also see the same strict which one sees in the value added tax criteria.
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Central sales tax, the CST is planned to get a setback and while the GST is in the way, the current rate of CST which is 2 percent is assumed to get a cutback of 1 percent. The CST was always the main reason to create a manipulation within the supply chain, and this would take a steep hike in the cutback of the same.
The exemptions are meant for the intentional growth of any particular sector which in return gives a benefit from the taxation but the area wise exemptions sometimes taken wrongly and also being misused for the personal growth of assets of mafia and agents. The much-sensed solution which can be taken up by the government is that the exemption will be provided after that the tax has been provided and then the return will be made. The economy also seems to go cashless in which the extension of relaxation on service tax over the bank transactions of up to INR 2000 may go further.
