GST or Goods and Service Tax is one of the biggest fiscal reforms in India since Independence. All businesses in the country, whether small or big are impacted by the new tax reform. GST is aimed at increasing the taxpayer base. Know the benefits of GST.
Saving more Money
For common people, GST offers many benefits. GST helps to eliminate double charging. Which leads to a reduction in the price of goods and services. After GST implementation, the price of FMCG products, small cars, cinema tickets, electrical wires, etc. are cutting prices of their products. The companies such as Patanjali, ITC, HUL, and Marico are slashing the prices of goods. GST: These Companies Are Cutting Price For Products
No multiple taxes
The biggest benefit of GST is an elimination of multiple indirect taxes. After July 1 excise, octroi, sales tax, CENVAT, Service tax, turnover tax, etc. are not applicable. Now all these taxes fall under GST.
No need for records
The taxpayers would not be required to maintain records of the Central Government and the State Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry Tax, Luxury Tax, Entertainment Tax, etc. The taxpayer only needs to maintain records and show compliance in respect of Central Goods and Services Tax Act.
Ease of business
The main advantage of GST is, it is helping the entrepreneurs in doing business activities. GST is bringing the country under one tax. GST prevent unhealthy competition among states. People doing interstate business will be the major beneficiaries of this.
GST replaced all 17 indirect taxes with a single tax. The increase in product demand will lead to increase in tax revenue for state and central government.
Easy Tax Filing and Documentation
For a businessman, GST will be a boon. No multiple taxes means compliance and documentation will be easy. Return filing, tax payment, and refund process will easy and hassle free.
Increase in GDP
GST will increase gross domestic product. It is estimated that GDP will grow by 1-2% due to GST. GST is widening the tax base and improving the taxpayer compliance. The new tax regime is likely to improve India's ranking in the Ease of Doing Business Index.
As GST will reduce the cost of product it is expected that demand for the product will increase and to meet the demand, supply has to go up. The requirement of more supply will be addressed by only increasing employment. GST: Gold Jewellery To Cost More; Apparel, Biscuits, Footwear Cheaper