GST Details To Educate Traders & Customer

“GST” ITS DETAILS & BENEFITS 

BENEFIT Structure Of Tax(India): How it was?

The structure of Indirect Taxes was very complex in India. There were so many types of taxes that are levied by the Central and State Governments on Goods & Services.

So, let us understand – what is Goods and Services Tax and its importance. Which Are as follow:-

‘GST is Goods and Services Tax’:- 

§A dual tax to be levied on the same taxable event by both the states and the union government.

§The taxable event will be ‘supply’ of goods or services.

§ The states will levy the tax on such supplies of goods / services made within the state, while the union will levy the tax on inter-state supplies, but the state will collect it as in the present case of CST. 

§Thus on each ‘supply’ of goods / services, there will be a state tax as well as a central tax. These will be called state GST and central GST respectively. 

§There will be a single document for tax purposes, and a single return filed with a central registry, from which the information will be split between the centre and the relevant states.

Traders' body CAIT(Confederation of All India Traders)  released a white paper on Goods and Services Tax (GST) to disseminate information about the new indirect tax regime. 

The 'GST White Paper' consists of all the important aspects of GST and its compliance, the Confederation of All India Traders (CAIT) said in a statement. 

CAIT Secretary General Praveen Khandelwal said:-

“though GST is implemented,yet large number of traders are still unaware about not only the basic fundamentals of GST but even the compliance obligations.” 

GST law to be enacted by centre and each state:-

ü An important feature of GST will be that tax paid on inter-state transactions will be available as Input Tax Credit.

ü For this purpose the taxing statutes of each state would have to incorporate this provision, as it will not work without complete synchronisation.

ü Therefore the next step after the Constitutional amendment will be that the GST Council  will provide draft enactments to the states and centre and these will have to be passed by each of the states and by Parliament respectively.

Benefits of GST Bill implementation:-

• The tax structure will be made lean and simple
• The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of businesses.
• It is good for export oriented businesses. Because it is not applied for goods/services which are exported out of India.
• In the long run, the lower tax burden could translate into lower prices on goods for consumers.
• The Suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices for consumers.
• It can bring more transparency and better compliance.
• Number of departments (tax departments) will reduce which in turn may lead to less corruption.
• More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections.
• Companies which are under unorganized sector will come under tax regime.