Here is what you must know about GST

by Rajnish Shanker Online gst services

Goods 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 339 times.

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