Addressed as one of the crucial tax reforms of Indian history, It took 17 years for the GST bill to get acceptance in the Indian law system decisively. The Goods and Services Tax (GST) includes almost all indirect taxes at the Central and State levels. GST endures a big hope for taxpayers to run their business smoothly. Under the GST regime, taxpayers are assigned a unique Goods and Services Tax Identification Number, known as GST number (GSTIN). for accounting processes easier.
Let us traverse how Goods and service tax GST is proving to be a boon for businesses in India.
GST advantages and disadvantages
Offering the benefits of going digital:
A secure online portal for enrollment, payment and filing of returns with the unique Goods and Services Tax Identification Number (GST number) promotes stable GST compliance. The online portal gives flexibility and choice to taxpayers to revise and refile their returns. In case they encounter any faults after filing.
Ease of doing business:
GST has been the main impetus to simplifying the indirect tax system in India. While reducing the subsiding effect of the tax, GST has done away with almost all the taxes. Thus, it has served ease in doing business for all. Further, the inter-state flow of goods and services have become more agile. It has become smooth and effortless. Uniform tax structures across states and Union Territories have reduced compliance costs and relieved them from multiple taxes.
Advanced transparency to lessen better future complexities
By guaranteeing transparency, the GST administration has gravelled the way for reducing scams, tax evasion, provoking of taxpayers and corruption. It has superseded a multi-dimensional, complicated indirect tax system with an easy, simple, transparent and fully techno-centric tax administration, leaving no place for uncertainties. The outcome leads to comfort for the taxpayer and increased taxes for the government.
Admittance to markets across India
As the new GST administration has subdued multiple taxations applicable for accomplishing business at different states, it has eliminated the tax-related disputes and complications that businesses had to face. With GST, businesses have smooth access and liberty to direct businesses at any state across India without worrying about paying multi-dimensional taxes and heavy transaction processes.
Disadvantages of GST
Online Tax Administration
GST is a digital tax system. From enrolling for GST number to filing GST returns, each aspect of this new tax administration is taken online. While businesses are constantly moving to digital solutions, small businesses are still not familiar with such advanced technologies and solutions.
Higher Taxes for Small and medium enterprises(SMEs)
Earlier, the excise duty was paid by businesses with a yearly turnover of above Rs. 1.5 crores. However, with the new tax administration, any business with a yearly turnover of above Rs. 20 lakhs is asked to pay GST.
Change is definitely never smooth. Earlier, there were various challenges faced by some sectors of the country. They did supersede in overcoming such obstacles and are experiencing the advantages of having a single, uniform tax structure. People are now gradually understanding the advantages and disadvantages of GST. It is just a matter of time before the problems conferred would also be fixed to a better extent.