If we analyse the roadmap of Goods and
Services Tax (GST), it has enormously benefitted the Indian Economy. Within
a short span of time, the GST created a huge momentum for businesses and
reducing the tax burden for the common man. The newly implemented indirect tax
regime ultimately helped every sector from manufacture to
buyers in bringing transparency, curbing tax evasion and making all businesses
strong. However, this biggest indirect tax has successfully completed its two
years which was introduced in India on1 July 2017. Subsequently, in this
article, we will discuss how goods and services taxes impacted India's economy
so far-
Positive Impact of GST
GST has simplified the taxation structure in
India that is for sure. Hence, here are the following benefits of Goods and
services tax that has a positive impact on the economy:
It eliminated the cascading tax effect
After the implementation of the Goods and
Services tax, all the taxes have been covered under one umbrella.
Following which cascading tax effect has been eliminated.
Higher threshold
Prior to the execution of GST, the businesses
who generate turnovers in excess of Rs.5 lakh were liable to pay VAT. But at
present, there is no such liability imposed on organizations.
No compliances under E-commerce operators
In the pre-GST era, supplying goods through
e-commerce was not properly structured and defined. Before the GST
regime, it had variable laws. For example, Online websites (like Flipkart and
Amazon) delivering to Uttar Pradesh had to file a VAT declaration and mention
the registration number of the delivery truck. Tax authorities could sometimes
seize goods if the documents were not produced.
However, all these compliances have been
eliminated under GST. For these issues, GST has clearly mapped out the
provisions for the e-commerce sector which is applicable all over India.
Unorganized sector is regulated under GST
Before GST was implemented, some of the
industries such as textile and construction were highly unorganized and
unregulated. The implementation of GST has seen the positive enclosure of
provisions for online payments and compliances.
India Economy Survey 2018 highlights from GST
As per the economic report, after the implementation of the Goods and Service
Tax (GST), there has been a 50% increase in the number of indirect taxpayers;
Large increase in voluntary registrations; distribution of GST base closely
linked to size of economies; strong correlation between export performance and
state’s standard of living and India’s formal sector was found to be
substantially greater than currently believed.
What is GST Return and who is supposed
to file it?
GST return is a document that is filed by the dealers,
who are registered under GST Act. A GST Return includes the details
mentioned-below: -
·
Sales made by the registered dealer
·
Purchase made by the registered dealer
·
Output GST on sales of goods and services
·
Input Tax Credit or ITC on purchase of goods
and services
What is Next?
Meanwhile, as GST
has already completed its two years successfully now it's yet to be decided
about what is next? In the next phase of GST, the Sovereignty authority is
expected to take up unfinished agenda, reforms, simplification of compliance
procedures, rationalization of tax rates, among others.
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