GST stands for Good and service tax which is implemented by the Government of India last year. There is much uproar in favor or against GST from businessman and political parties. Hence, if you are also perplexed about What is GST and why is it important for your business then go through this article.
What Is GST: GST bill passed in Indian legislative assembly on 3rd August 2016. Prior to GST, there were different types of tax are applicable in the good and service tax. The tax in the same good & services was different in states. However, after the implementation of GST, only a single tax for the single nation is applicable and tax rate will be the same. GST is considered to be the most revolutionary and historical economical change post the independence.
Now, GST is successfully implemented across all India.
Let's have a look at the some important facts about GST.
What are the taxes that GST replaces?
The GST will replace several existing taxes. These are the following taxes that will be eliminated after the introduction of GST.
Central Excise Duty
Special Countervailing Duty
Value Added Tax (VAT)
Central Sales Tax (CST)
Taxes applicable on lotteries.
What will be the short-term impact of GST?
A lot of businessmen are worried about the impacts of GST on their business. After the implementation of GST the price of fuel will increase for a short period of time. The GST rates start from 5% to 18% hence the service fees would increase in restaurants and cinema halls. Another problem with GST is that it has not included a major source of Government Income liquor and petrol and it occurred due to the capitalist who want to escape from paying taxes.
What’s the benefit of registering a business under GST?
If you are running a business and want to know what are the benefits of registering your business under the GST, then go through the following points.
Once you'll register your business under GST, your business would become legally recognizable that would prevent you from all future legal implications.
GST will eliminate the tax on the tax structure of India, which would eventually bring down the overall cost of goods. GST would make the goods & services cheaper for consumer and increase the cash flow in the industry that is benevolent for the industry.
Convenient Filing: If you are a small business owner then you can take the assistance of your charted accountant who would assist you in filing the GST. If you are looking for best chartered accountant firm in Punjab then you are at right place.
We assist businesses in filing the GST returns and make the entire process smooth. Coming back to how GST is beneficial for businesses, earlier, it was extremely hard for companies to track and pay a different type of taxes that would consume a lot of time. With GST, you only require to pay a single tax that makes your monthly and annual returns much easier.
Even there is an online GST portal that has all necessary steps from acquiring the GSTIN number to filing GST returns monthly or annually. It is immensely simple to file the GST return or acquire the GSTIN number. However, if you are confronting issues in obtaining the GSTIN number for your business or GST return file then you can seek the assistance of best CA firm in Punjab.
Reduced Tax Barriers: One of the most astounding features of GST is that it reduces the tax barriers among all states of India. Before the implementation of GST, it was hard to sell people from other states. One needs to pay different types of tax to get able to sell their product. For small businesses, it was a tough task to handle all these issues but after the introduction of single tax across the nation, it becomes convenient to sell across different parts of India.
Easy Shipping: Before GST, shipping your product across the different state of India was a hassle. You need to go through several documentation process and taxes to ship your product to another state. The GST regime tries to solve all these issues because the various states and national taxes need not to be paid. As part of GST, the government is eliminating border checkpoints, which saves time and fuel and helps your products arrive on time.
These are some of the benefits that a small business owner or any business starts to obtain after the implementation of GST.
However, a lot of businessmen, still confront issues in filing GST returns or applying for GSTIN number. Thus, if you are one of them who is confronting any obstacles in filing GST return then you should get the assistance of best CA firms in Punjab. Contact us here.