Just what is GST?

The much anticipated GST rollout is placed to happen during the Financial Year 2017-18, cutting compliance and improving easy conducting business for millions of small enterprises in India. By abolishing and subsuming multiple taxes in to a single system, tax complexities will be reduced while tax base is increased substantially. Underneath the new GST regime, all entities related to selling or buying goods or providing services or both have to obtain GST registration. Entities without GST registration would stop being in a position to collect GST from customer or claim input tax credit of GST paid. Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a different business that is required to cross the prescribed turnover.

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The Prime Minister approved. The constitution amendment bill for Goods and Service Tax(GST) in the Parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016) along with the ratification by 50 % of state legislatures. Thus the present indirect taxes levied by state and centre are generally set to become substituted for proposed implementation of Tax Rates Under GST by April 2017. This may be the biggest tax reform since independence along with a boon on the economy mainly because it will eradicate the shortcomings with the current tax structure and provide a single tax on flow of all services and goods.

Advantages of GST :

Eliminating cascading effect of taxes.

Tax rates will probably be comparatively lower as the tax base will widen.

Seamless flow of Input tax credit.

Prices with the services and goods will fall.

Efficient supply change management.

Promote shit from unorganised sector to organised sector.
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