The Goods and Services Tax (GST) is an effort by the Indian Government to tax all activities that is related to supply of goods and services. This is a string step to cut down the corruption and make it more amenable.
- Reduced Interface
The online filing of the GST can easily be done for the returns of the taxpayers. The taxpayers can easily get the refund by online. Not only this, it also minimizes the interface present in between assesses and officers that cuts down the corruption and bribery.
- Greater Transparency
The GST Network (GSTN) is intelligently designed for capturing the transaction details up to invoice level. Several inputs or services could be used in providing the goods or services. Now, the documentations process could be eliminated completely and it is easy to notice the data by central government officers. Hiding anything could be difficult.
- Curbing domestic black money
Agreeing that the reform for indirect taxes is done with GST, there are certain filers who devalue incomes by not reporting against each and every transaction. The whole process is required for saving the excise duty, VAT and others. The incomes can easily be furnish under the GST rules. A paper trial is done under GST that is required for easy accessing by the income tax department that truly discourage generation of black money in the system.
- Usage of PAN and Aadhar
One can easily file the GST returns with Aadhar card and PAN. This is required to file GST returns and also help the income tax department to keep an eye on the transactions. The process of data mapping also becomes easy for audit by the revenue authorities. There is a dual monitoring structure present in GST that involves both Centre and states. Not only this, it also cut down the income tax evasions. GST requires the mandatory paper trail to create a path to improve tax compliance.
- Reporting of Goods
The major dodge in the current trade practices comes under the goods being sold and purchased. According to the GST regime, it is very typical to push the implicit goods in the value chain illegally. Under this act, it is predictable that the real values of goods will be declared with real quantification.
- Improved Compliance
To improvise the compliance, the suppliers have to register with GST. It is mere a silliness if the suppliers keep the goods and services out of the tracked supply. By doing this, they cannot be able to reach their final consumer.
- Better Tracking Online
Until the introduction of GST, no one can see any official indirect taxation recording and tracking system in India. With its implementation, it is necessary for all the merchants to register under the GST. By this, they can easily prepare, file taxes, rectify the returns and pay indirect tax liabilities with the platform.
As a consumer, you can note an increase in the tax compliance. All thanks to the GST.