How GST Will Benefit Retailers
Good and Services Tax (GST) is a complete tax which is to be levied on making, sale, and destruction of goods and service at PAN India level. It’s an attempt to do away with several secondary taxes or double taxation, therefore opening up opportunities for a common market and removing state limits.
Introduction to GST appears largely because of very complicated tax rules in India. It proposes to completely reduce double taxation.
It completely combines taxation at national and state level and doesn’t separate between Goods and Services. Developing a part of the proposed tax improvement, GST will assure a mode of seamless and associated tax structure.
Taking into the problems of the retail industry, GST will be a help to the industry at different steps of a business. For beginners, it will make way for easier procurement and movement of raw materials. Suppliers and vendors will go hand in hand as often unnecessary and time-consuming paperwork at state limits will be avoided. Excellent edges could be had with the help of simple tax and input tax credits. GST also aims at eliminating red tape and lengthy documentation & submission of various forms. The advantages for retailers are the following:
Single Tax- With its implementation, the state and central government will come together for a single tax regime thereby avoiding multiple state and central taxes.
Unified Market- CST and entry tax will be abolished which paves the way for business growth along the length and width of the country.
The demarcation between Goods and Services- Under the new system, goods and services would be treated as one package. Until now these two were counted as a separate entity on some occasions.
Improvement in Supply Chain- complex at state edges during transportation of goods is a major problem. Lots of inventory lies united in transition which hinders on-time delivery. This will be eliminated once GST is implemented.
Asimot is planning to implement GST as soon as the statement is made and the required requirements would be adhered to.
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