Here is what you must know about GST
by Rajnish Shanker Online gst servicesGoods
and Service Tax (GST) was implemented in India on 1 July 2017. This newly
derived tax finished all the other taxes. In this different types of taxes are
clubbed together as GST. This is a benefit to the consumer as now they can’t be
fooled in the name of taxes. There are GST Accounting Consulting Firms
India which can help you
to deal with this new and varied type of tax.
What
are the sections under GST?
There are 3 appropriate
taxes under GST: CGST, SGST & IGST.
CGST: Collected
by the Central Government on an intra-state sale (Eg: Within Karnataka)
SGST: Collected
by the State Government on an intra-state sale (Eg: Within Karnataka)
IGST: Collected
by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu)
Benefits of GST to the Central
and State Governments
Multiple indirect taxes
which were collected at the Central and State levels are being substituted by
GST. This tax will be easy and comfortable to administer than all other
indirect taxes of the Centre and State levied so far.
GST will result in
better tax fulfillment due to an IT infrastructure. Due to the flawless
transfer of input tax credit from one stage to another in the sequence of value
addition, there is an inbuilt mechanism in the plan of GST that would
incentivize tax fulfillment by traders.
GST is expected to
reduce the cost of collection of tax revenues of the Government, and will,
therefore, lead to higher revenue effectiveness.
Benefits For the
consumer
As all the different
types of taxes being waved off by the Centre and State, with incomplete or no
input tax credits accessible at progressive stages of value addition, the price
of most goods and services in the country at present are loaded with many
unknown taxes. Under GST, there would be only one tax from the producer to the
consumer, leading to simplicity of taxes paid to the final
As there will be an
increase in competence gains and avoidance of leakages, the overall tax burden
on most possessions will fall down, which will be an advantage to the
consumers.
Thus, GST is a campaign
to finish the black money in the market and all the illegal practices. The
start may have disturbed the public as they have to obtain GST number and do
all the processing but thinking about the long run it is going to be a beneficial
policy. Even to make public stay calm GST Accounting Consulting Firms India are present which can help
people to understand this new setup scenario.
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Created on Oct 23rd 2017 07:27. Viewed 343 times.