Hello, friends, I am here with new information about GST and advantages of GST. This information about GST consists of Indian new tax reforms.
This is the first time our country is going to be one tax one nation. This reform has started for 1st July 2017. There are lots of other countries where their economy runs on this model of GST and availing the advantages of GST. They are doing very well. Pakistan economy runs on GST model. Soon or later every country will come under one tax policy to boost their economy just like India. If any country has a different tax policy, then it will be difficult for doing business. Business establishments will have to go through different tax policy in that country. In another word, development will not be proper.
Now, friends, I will take you through what GST is and advantages of GST.
GST stands for Goods and Service tax or tax made simple as Goods simple tax. It is the much-wanted bill which every businessman was waiting for. This happened in the June 2017. Advantages of GST is that
every big to a small businessman is out from multiple taxing, which happened from central and state government.
In GST, from buying to selling, service providing, everybody has to come to do GST
Registration. In Northeast India, person with turnover of 10lacks will come under GST whereas rest of
India will come under GST if his turnover 20lacks. Everyone must file for GST registration within 30days
from the effect of GST
Advantages of GST
- Unified platform
- Subsuming of tax
- ease of doing business
- lower tax
- a larger tax base
with coming of GST into the act, every type of indirect tax will come under one roof. The tax system would be upgraded. Various types of indirect tax are getting marginalized. Under GST Rule, no business establishment has to obtain various types of VAT registration which are done by State governments. GST itself is enough for selling or purchasing of goods throughout India
Sub-summing of taxes
Various types of other taxes like Additional Customs tax, Luxury tax, Purchase tax, central sales tax etc will be no more. Everything has been considered under GST. This will make tax system easy throughout the country.
Ease of doing business
Business establishments like Restaurant, computer sales and services had to give both vat and service tax. These type of tax create a burden on business establishments. These businesses have to go through huge calculation of various type of tax. It makes business tiring rather than a pleasure. In GST the difference between goods and service will not be there which will make business easier.
lower tax meaning in some state there is vat (value added tax) where the rate is 21% in certain goods plus another type of tax. So everyone has to give more tax but when GST came into effect, any businessmen whose turnover is 10 lack per year only will give tax otherwise he will not give tax. It is 10 lakhs for northeast and 20 lakhs for rest of India. Earlier there were much taxes in line, with the effect of GST every tax will come into one. This makes lower tax rate.
A larger tax base
GST which is the father of all taxes. With GST coming into action, the tax base
In India will increase. Hence business liabilities are going to reduce in overtime as everyone will follow the rules of GST. Moreover, GST will go into latest technology. This consists of including data from Aadhar Card, Pan Card for registration in GST and avail the advantages of GST.