We, humans, look for benefits of even the small things and changes in our lives, and this is about money, how can we neglect this and the related perks?
Tagging the “imposition of GST” in the country with one of the “most revolutionized steps in India” would not be wrong. It was hailed as the country’s one of the most significant tax reforms, so there has to be something out of the ordinary in this tax in comparison to the rest of the indirect taxes collectively. Let us begin by looking at the advantages of GST.
Mitigation of the cascading effect of tax-
The imposition has eliminated the need of paying tax on taxes and saved a lot of taxpayers’ money. It has eased the functioning of the supply of the goods and services in the country.
Hike in taxpayer threshold-
GST has resulted in higher threshold by taking the value of the tax exemption amount for the small traders and service providers to Rs 20 lakh. Whereas, on the other hand, before GST regime, that is under the multiple tax system in the country, every business who was entitled to a turnover of Rs 5 lakh has to pay Value Added Tax (VAT). And for the service providers, Rs 10 lakh was the threshold.
The downfall in the number of compliances-
Under the previous taxation system, some returns were needed to be filled respectively.
For instance, a monthly return filling was required for excise tax, and for service tax, there were two categories under this. For the company and the LLP, there was the monthly filing of the return, and the other case includes proprietorship and partnership. It had asked for quarterly returns.
But as we have reached to the GST regime, one consolidated return is to be filled now. Out of the total 11 returns under GST, all the taxpayers have to fill the four primary returns. The first is populated manually, and GST-2 and GST-3 are to be auto-populated.
Regulation of the unorganized sector-
We, as a developing country has myriad of unorganized and unregulated sectors such as textile and construction. But the advent of GST has transformed the scenario. It has been possible with the online payments and compliances in order to avail the input credit.
A way to e-commerce-
We all knew that the reliance on the e-commerce had increased post the GST imposition in the nation. Pre-GST era was not able to ultimately define the supply of goods through e-commerce. The reason behind was variable VAT laws in the sector.
Accessible return filling procedure-
We all have seen our elders running from pillar to post to get the returns filed, but the post-GST regime has eased and simplified the process by taking it online.
These are the essential and effective perks of single indirect tax on the operation and supply of goods and services tax.
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