Gst- Empowering Indian Economies

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In India, the GST Bill was initiated in 2014 as The Constitution under the 122nd Amendment Bill and got approval in 2016. Rajya Sabha renumbered it in the statute as The Constitution under the 101 Amendment Act, 2016.

GST- An Introduction

The extended form of GST is Goods and Services Tax, a value-added tax charged on most goods and services sold for domestic consumption. Consumers pay the GST to the government by the businesses selling the goods and services.

There are four types of GST, namely,

CGST- Central Goods and Services Tax
SGST- State Goods and Services Tax
IGST- Integrated Goods and Services Tax
UTGST- Union Territory Goods and Services Tax

GST Registration

According to GST, businesses whose turnover exceeds the threshold limit of Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh, as the case may be, should register as a taxable person, known as GST registration. GST registration mainly takes between 2-6 working days.
For some businesses, registration under GST is mandatory. ...
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Through the GST Portal, you can register your business. If the organization continues business without registering under GST, it is a punishable offense, and heavy penalties will apply.

Objectives of GST

The primary goals of GST Tax are to:

Bring uniformity in taxes- One of the primary objectives of GST is to have a uniform tax code for a product or service across the country. It also simplifies tax administration, billing, invoicing, and compliance laws.

Remove multiple indirect taxes: GST combines all indirect taxes into one. It eases tax compliance protocols for businesses that pay and file tax reports.
Prevent tax evasion and fraud: GST has a stringent surveillance system, allowing authorities to identify and initiate action against defaulters and fraudsters, which reduces tax evasion.
Regulate the unorganized sector of the economy: GST aims to bring more businesses from organized and unorganized sectors into the tax base and help governments invest in infrastructure and crucial development plans.

Benefits of GST Reform in India

Reforms Brought by GST have various advantages like:

Mitigation of cascading effect- GST mitigated the consequences of cascading or double taxation in a significant way and covered the way for a national market.
Reduction in Tax burden on Consumers - From the consumers’ point of view, the most significant advantage would be reducing the overall tax burden on goods.
Making Indian products more competitive- The establishment of GST promotes Make in India by making Indian goods more competitive in the national and international markets.
More accessible to administer- Because of the transparent and self-policing character of GST, it would be easier to administer taxation.

GST slabs in India

According to the GST Council, there are four GST tax slabs in India: 5%, 12%, 18%, and 28% on goods and services. This is aside from the tax on gold, which is 3%, and rough precious and semi-precious stones placed at a special rate of 0.25% under GST.

Conclusion

GST is a positive step towards shifting the Indian economy from informal to formal. We must use experiences from global economies that have implemented GST before us to overcome the impending challenges.
Eazybills is the best billing software in India, which helps you obtain GST registration faster, allows ITR filling, and saves your time so that you can focus on your business. Please read the blog and articles on our website for GST-related information.