When the GST was announced everyone had some good thing and some bad in their mind. Overall, as the time passed, the GST emerges out as the unified tax system which is a big relief for the Indian people. It is regarded as a harmonized tax on services and goods that is applied across all of the Indian states. Fundamentally, GST acts as a fiscal structure that has come into action for replacing different multilayered indirect tax regimes existing in India. The experts explain that, the GST is only the simplified form of the taxation required for achieving numerous objectives. These can include minimizing the tax burden, mounting up the tax base and increasing the tax collections.
The important thing about GST is the point of imposing. If we talk only about the GST, then its levy point is ‘supply’. The GST act clearly defines the constitution of the supply required for the sale of goods and services. If you are running a business, then you have to register yourself under the GST that replaces all the taxes. There are some key points stated below that clarify the scene a little more.
- It brings opportunities to the industries for revisiting the GST paper and presents their views.
- The indirect taxes are finally subsumed by GST.
- There is an assurance that no new taxes will further be introduced after GST comes into rule.
- Presence of transitional provisions so as to ensure the continuity of existing benefits.
- There would be no denial or reduction of concessions linked to the movement of goods on the stock transfer.
It is now estimated that the GST success is so near, yet so far.
Should you also prepare for GST?
If you are thinking about this question, then the answer is absolutely yes. If you are already a registrant under VAT, service tax or excise duty, then you are also applicable to register under the GST. Those having turnover of less than 20 lakhs (10 lakhs for North East state), then it is not at all mandatory to register under the GST. Remember that, this limit is not considered for the business practicing inter-state transaction. Apart from this, we you have a running website through which you do the supply of goods or services, apply for the GST registration. GST is also applicable for the ‘input service distributor’. He is the one who has the head office and receive the billing for services of different branches. Later on, all the bills are sent to the respective branches.
The major purpose of GST is to streamline the output tax structure. There is no logic to find that which goods are used for attracting large tax. There are many slabs available of taxes that are bifurcated according to the goods of the state. Now, they are unified and ultimately the business person, the consumer and the mid party, everyone is happy with this move. GST is the best way to solve the messed up taxes.