How Is GST Regime Helping Businesses?
How is GST regime helping businesses?
GST Regime Helping Businesses: GST which is alternatively termed as good and service tax is introduced in the nation on July 1st, 2017 with the aim of bringing the tax of the nation under a single roof. Though the regime was introduced to offer many benefits to the consumers and the business, the concept is yet in the incubation stage in terms of understanding for many business owners. In an effort to
understand the regime, the business owner should first understand the benefits they get with
the implementation of GST.
One nation one tax
In fact, this is the major motive of the government behind the implementation of GST. The new
regime involves the amalgamation of several state and central taxes. One single tax will be
charged in the invoice over several indirect taxes.
Wider market for business across nation
Implementation of GST will rule out central sales tax that was present earlier when the
businesses wanted to transact between the states. This indirect tax CST which is neither
credited by manufacturer or trader and was an additional tax burden for the business to transact
between the states. In the absence of central sales tax, good products that are manufactured
in one part of the nation can easily gain market in another part of the nation thus promoting the
scope of your business.
Invoice made simple
Invoicing for the business was a complex scenario until the implementation of GST because it
involved charging different taxes for the products and services offered by the business. Now the
single tax regime has made invoicing simple for the business organizations. GST also facilitates
seamless tax credit from the manufacturer to dealer and dealers to retailers thereby eliminating
cascading of taxes. With the implementation of GST, the tax laws have become simpler with
Reduce the cost of locally manufactured goods
As GST vanishes all the indirect taxes that are levied on the manufacture of goods, the cost of
locally manufactured goods is reduced to the great extent. The government gives input tax
credit to manufacturers which in turn is shared with their customer. Because of this tax reduction
on the exports and manufacturing goods, Indian business turns to be more competitive in the
global market GST Regime Helping Businesses.
There will be a significant reduction in the transportation costs because of the long winding queues at interstate border check posts. There will be a lot of saving in terms of time and costs in the business logistics. You may be surprised to hear that the business owner will be able to save 40% of their logistics costs due to the absence of check posts and toll plazas.
Simple online procedure
Implementation of GST also works as one of the strong pillars in promoting digital India. With
business owners using GST to file their taxes, everything turns to be online. Right from the GST
registration to filing taxes can be done online through the simple procedure so, there will be no
need for the small business organizations to run around tax offices either to enroll their business
under GST or file a tax return.
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