Easy Compliance to all taxpayers registrations, returns, payments etc. would be available to the taxpayers online, which would make compliance easy and transparent. The complete GST process takes place electronically (from registration to filing returns), and it’s remarkably simple. In particular, it has been advantageous for start-ups, as they don’t have to run from place to place to even get various registrations such as VAT, excise, and service tax.
Fortunately, under GST, there is only one single, unified return to be filed. The number of returns to be filed has, thus, decreased. There are approximately 11 returns under GST, of which 4 are basic returns that apply under GST to all taxable persons. The key GSTR-1 will be manually populated and auto-populated with GSTR-2 and GSTR-3.GST will ensure uniformity and Structural Indirect Tax rates which will be common throughout the country, thereby increasing certainty and ease of doing business.
The GST is a comprehensive indirect tax intended to put indirect taxation under a common roof. More significantly, the cascading impact of the tax that was visible before would be removed. The ‘tax on tax’ can instead be represented as the cascading tax effect. There will be Removal of Cascading. A system of seamless tax credits throughout the value-chain ad across boundaries of states, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
Improved Competitivenessbecause of reduction in transaction cost of doing business would eventually lead to an improved competitiveness for the trade and industry.
Gain to manufacture and exporters there is subsuming of central State taxes in GST, complete and comprehensive set-off of input of goods and services and phasing out of Central Sales Tax would reduce the cost of locally manufactured goods and services.
Previously, any company with a revenue of more than Rs 5 lakh (in most states) was liable to pay VAT under the VAT system. Please be aware that this cap was state-wise different. For service providers with a revenue of less than Rs 10 lakh, service tax has also been exempted. However, this level has been raised to Rs 20 lakh under the Gst system, which excludes many small traders and service providers.
Smaller firms (with a revenue of Rs 20 to 75 lakh) will prosper under GST as it provides a choice to minimize taxation by the use of the Composition scheme. This step has decimated on many small businesses the tax and enforcement pressure.
The online platforms (such as Flipkart and Amazon) supplying Uttar Pradesh had to file a VAT statement and indicate the shipment truck’s registration number. If the documentation were not created, tax authorities could often seize products. Again, states such as Kerala, Rajasthan, and West Bengal regarded these e-commerce brands as coordinators or mediators, which didn’t involve them to register for VAT. Under GST, both of these unequal treatments and misleading enforcement have been abolished. For the first instance, the regulations applicable to the e-commerce sector have been clearly mapped out by GSTand because these are relevant across India, there wouldn’t be any more problems with respect to the inter-state transportation of materials