The revolutionary change in Indian Tax System unveiled yesterday. The government introduced new Goods and Services Tax aka GST by replacing older tax system. New GST will be applicable from July 1, in four new slabs 5, 12, 18, and 28 percent.
What is GST?
GST or Goods and Services Tax is one indirect tax for the entire country will help India to become one common market in each part of the whole nation.
Major Benefits from GST
Being a single tax is naturally have some benefit for every household. Here we will discuss benifits from Business and Consumer perspective.
Advantages of GST for Business and Industry
Compliance made easy: GST is supported by robust and comprehensive IT system, there for the taxpayers can easily enroll for registrations, returns, and payments. Online availability makes it more compliant and transparent to use.
Uniform Tax Structure: GST to ensure all indirect taxes come under one umbrella divided into for tax slabs of 5, 12, 18, and 28 percent. It means doing business will be easy anywhere in India, due to tax impact will remain neutral irrespective of the choice of doing business.
Elimination of Cascading: A seamless tax-credit system will help to reduce cascading of taxes across all state borders. The will help to eliminate hidden costs of doing business.
Enhanced Competitiveness: After GST transaction costs will be reduced and eventually lead to effective competitiveness for the trade and industry.
Gain to Exporters and Manufacturers: Submission of center and state level taxes into one GST will reduce the cost of locally manufactured goods. This will encourage boosting Indian exports to international market. Uniform tax rates will also go a long way to reducing compliance costs.
Advantages of GST for Consumers
Single and Transparent Tax: Uniform tax system of GST to help consumer for paying taxes for good and services highly transparent way. Consumers to finally get relief from hidden taxes.
Overall Relief on Tax Burden: GST will introduce highly efficient tax formation in the country, the tax leakage is prevented in new tax system.
Hene the overall tax burden of the consumer will be reduced after Goods and Services tax.