GST Registration and Filing consultancy
GST in India is an abbreviation for goods and services tax. It is a single tax that covers goods from the manufacturer to the consumer. It is charged on value addition and is therefore passed down the chain. The goods and services we are talking about here refer to domestic consumption on local and imported items. Exceptions exist, and included are the sale or lease of residential properties and those that are related to financial services. GST is the same as the Value Added Tax (VAT) in many other countries with import and output taxes in it. This tax is regulated by the GST Council whose chairman is the Union Finance Minister of India.
GST was introduced through an amendment to the constitution and will be applicable from 1st July 2017, and it will be implemented by the central government. The government is developing structures in place that ensure revenue collection will be straightforward and seamless.
GST will absorb some indirect taxes like central exercise duty, service tax, surcharges and state-level value added tax. It will also do away with some levies like the interstate transportation of goods.
Benefits of GST
Easy compliance; This is mainly done through the Goods and Services Tax Network (GSTN). This is a platform created to connect all the parties involved through a single portal. These are the government, stakeholders, and taxpayers. Through the portal, the government can follow up on taxes of all individuals while on the other end, taxpayers can file their taxes and update their returns on it. Online updating which makes compliance easy and transparent.
GST ensure that tax returns including structures are similar throughout the country. This reduces the burden of overtaxing as well as easing the process of doing business. Through GST, all business will not be overburdened regardless of their place of business throughout India.
GST ensures there are seamless tax credits on the value chain reducing the hidden charges that exist. It also reduces cases of double taxing.
As costs of doing business go down, more and more business sprout increasing competitiveness. This has a way of ensuring customers have a variety to choose from and producers are always improving quality.
A seamless tax system will reduce the cost of doing business which has an overall effect of reducing the cost of locally manufactured goods and services. This leads to the improvement of the economy through the creation of employment and also buying local products which have an overall positive ripple effect.
The introduction of GST is, therefore, an improvement on the government’s revenue collection system. With the automation of the process, filing returns are less hectic and might lead to an increase in the revenue collection. Since it will also decrease the cost of collecting taxes, it will end up being more efficient in the long-run. The fact that payment will be through a single system also ensures there is no need of unification of records increasing efficiency.
At JNJ Experts, we will help you prepare your business for GST and enable you to benefit with the efficiency it brings to businesses.