Promote your Business Tax with two greatest changes in the Indian economy in the last few decades, GST (the other one being Demonetization) had a lot of buzz surrounding it ever since August 3rd, 2016, the day it was announced. While the government officials are still in talks to amend GST, here are 4 things that any Business owner must know about Good Services Tax.
why you require GST for your Business?
Goods and service tax is the most awaited tax improve post independence. GST aims to bring uniformity and predictable tax regime throughout the country. It facilitate fewer compliance concern for the businesses, transparency in transactions, expand the tax coverage. Faster transport of goods, uniform tax for goods and services.In simple words, it would introduce two-tiered One-Country-One-Tax scheme.
Who will benefit by GST?
business Owners with pan-India will have a lower cost of consent as they would pay only one tax. Retail business will benefit the most as there would be a smooth movement of goods, best logistics, and develop in the supply chain. Retailers across sectors will be benefited on improved consumption as there will be a decreased in tax on necessary and basic items.
How does it impact the overall economy of India?
- It is estimated that an most of economic growth of at least 2% is likely once GST is implemented.
- It can reject all indirect taxes at the center and the state level.
- It would not only broaden the tax scheme by covering goods and services but also make it permeable.
- It can free the manufacture sector from descend effect of taxes, thereby increasing the cost of competing goods and services.
- It can lower the prices of goods and services and therefore, increase consumption.
- It can create a business-friendly environment, thus by increase tax-GDP ratio.
- It can improve the ease of doing business in India.
How is the current tax structure going to change?
GST combines all indirect taxes collected by the Central and State governments under common platform. These are the taxes replaced by GST include:
- Excise Duty
- VAT
- CST
- Service Tax
