Goods and Services tax is supposed to be well designed in order to rationalize and simplify the previous multilayered tax regime in order to eliminate unnecessary taxes on basic food items and for placing Indian economy on a high growth trajectory. Well, GST might have positive and negative points associated with it, but Indian population is currently in appreciation of the reforms taken by the present government to eradicate the complex and confusing indirect tax regime. However, small sector businesses are in opposition and are not happy with this tax reform at all.
GST has been designed to make the taxation system transparent and make it simpler. GST has replaced multilayered tax regime. Things are a bit difficult, though common people will not see a lot of changes after the implementation of GST for some duration, it is the Small and Medium Enterprises that have been hit hard by GST. Almost all the products have been covered under GST except Petroleum products and alcohol. Well, if you haven’t read anything about GST yet or if you have a bit of confusion about GST or have a desire to find important things to know about GST for Business, this article will surely help you in finding answers to your questions.
Here are some basic of GST that every Indian should be aware of.
What is GST?
Git can be defined as a replacement for multilayered taxation system and is aimed to transform Indian market to a unified common market. Single tax on goods and services, from the very start which means from manufacturer to consumer. Well, the tax rate has been decided by the government and is categorized into four categories. The basic food items surely have become cheaper, but luxurious items and packaged food price will see a considerable increase.
Benefits of GST
• The confusion generated within the population because of hidden taxes was surely a problem that needed attention. However, with GST people will not have to face this problem. As the tax paid now will be transparent and will surely to some extent help tackle the inflation in the market.
• In the long run, the overall tax burden over commodities will decrease to a great extent offering relief to the Indian population.
Benefits for business
• One of the best things about GST will be its easier compliance. A comprehensive IT system is used as the foundation of the GST regime. One can complete the registration process, return and payment online itself. You won’t have to run from office to office in order to get the work done.
• The common rate feature of GST will make it possible for business owners to expand their businesses to various other parts of the country without the need for huge amounts of paperwork and with the burden of complying with different tax rules in different states.
• E-commerce sites or the market will be the one getting most out of the GST tax reform.