GST is an innovative indirect tax system implemented to simplify the tax process in India. It replaced multiple state and central taxes with a single comprehensive tax framework, leading to a more efficient and transparent system for businesses.
The primary objectives of GST are to eliminate the cascading effect of taxes, improve tax compliance, and make it easier to conduct business.
In GST Tax Regime, There is Some Benefit for the Companies:
Here are some of the benefits for the companies under the GST regime as reducing the tax burden and working costs for companies while also creating a unified national market.
Common Return Form for Center and State
The days are gone when there were different returns at center level and state level (Service tax return at center and Vat return at state level). In GST, there will be one return for services and goods and there is no need to file 2 different returns at state and center level. It’s a big relief for the assessees that now there is a single comprehensive return.
Common Taxation Procedure
In all over India now only one tax procedure will be followed. That’s why the whole India becomes one market. Now the company will sell their goods and services without any state territory limits.
Online Facility
In GST there is online facility by the department for the payment of tax and filling of return, registration etc. These facility will save the time and cost of the company as well as the compliance’s of the tax provision will be done smoothly.
Tax Credit Benefits
In GST there we can take tax benefit of interstate sales and purchase of goods and services. As in there is no distinguish between goods and services that’s why now either sales of services or goods we can take tax benefit for both and its inter changeable too.
Export Oriented
In GST there are lots of tax benefit in case of export. There are easy refund process in case of export. So we can hope that after application of GST other export procedure will easier and business will grow with faster rate.
Nullify Cascading Effect
There are lots of taxes that are available now a days and that’s on the sales and purchase of the goods or services the tax is computed on tax amount too (like in excise act Vat is apply on excise duty amount too) its called cascading effect. After GST only one tax is applicable all over India and that’s why cascading will be nullify. And the main impact of this is that the prices of the goods will go down.
Wider Area of GST
In GST the area becomes wider that’s why each assessees in supply chain become the part of the GST. So the loop holing of tax minimize and all kind of assessee can take benefits from each other.
State can’t Effect the Business of the Companies
In current scenario, each state have their own taxation system and their own tax liability to the assessee of the states. But after GST, the tax rate (About to same) that’s why for the business purpose there is no difference. Now assessees can business anywhere in India and enjoy all the benefits.
