Skip to main content

Benefits of GST 2018 | Notifications of October 2018 | Certicom

The First Country in the world to implement the GST Law was France (in 1954). More than 160 countries have implemented this GST system. Following are the great benefits of GST in India.

Consumer Side Benefits:

  • Uniform prices for goods and services throughout India.
  •  GST definitely reduces the tax burden of Indian citizens by removing some of the indirect taxes collected by the Center and the State, because the cost of most goods and services in India is currently loaded with a lot of hidden taxes.
  • This means that consumers will now only bear the GST charged at the previous point of the supply chain and not from the manufacturing stage. This reduces the tax burden for end consumers.
  • The final cost of goods is expected to be lower because of the smooth flow of tax credit input between producers, retailers and service suppliers.
  •  The overall tax for some commodities and services will decrease. This will benefit more consumers.

Benefits for the Central Government and State:

  • GST replaces some indirect taxes at the Central and State levels, which leads to the administration of the tax system Simple and easy across India.
  • GST will also make Indian products competitive in the domestic and international markets, which benefit greatly from the Central and State Governments. GST will have an impact that drives India’s economic growth.
  • Increase the overall investment climate in India which will naturally benefit development in the Indian state.

Benefits for Business and Industry:

  • Free Flow of Goods and Services – No Checkpoint.
  • Tax diversity reduction: – There will be a public market without CST (Central Sales Tax – indirect taxes imposed only on goods sold from one country to another) and entry tax.
  • A simpler invoice: – At present, invoices are more detailed because the goods and services tax are written separately for one transaction. With GST implementation, only one level will be written.
  • GST replaces the entrance tax: – Elimination of entry tax is a big advantage for the movement of goods through land transportation.
  • With the implementation of GST, zero rating is more comprehensive.
  • Company with turnover Rs. 20 lakhs (Rs. 10 lakh for special categories) are excluded each year from GST.
  • More efficient tax determination, especially for exports.

Comments

Post a Comment

Popular posts from this blog

What does "GST extra as applicable" mean? | GST Consultant | Certicom

What does “GST extra as applicable” mean? In our country, no one knows as for when the rate of any taxes will get changed and/or a new tax/es will get imposed. Sometimes, to counter the stiff competition, a dealer classify the product being sold under a particular heading taking the benefit of lesser taxes, against the large company classifying the same product under a different head. Therefore in order to safeguard its interest, the dealer quote the price as rate plus applicable taxes at the time of delivery/invoicing. When someone quotes his fees or the price of goods, he may use the words,  GST  extra as may be applicable. This is written in the following cases. If the rate at the time of quotation is not known to the supplier. If the supplier is not registered at the time of giving quotation but over a period of time he might have to register. Hence he clarifies that GST will be over and above the rate that he has quoted. Supplier thinks that GST rates may ch...
Post a Comment
Read more

How GST works in India? | Indirect tax structures | Certicom

GST is a Destination-based tax. GST follows a Multi-Stage collection mechanism. The Goods and Services Tax (GST) will be collected at each stage (from the product manufacturing stage to the delivery to the final consumer) and the tax credit paid in the previous stage is available as a set-off at the next stage of the transaction. This helps eliminate the system of “Indirect tax on taxes”. Indirect tax structures in India can be clearly understood from the following chart: Now GST (Goods and Services Tax) replaces all of these indirect taxes collected by the Central and State Governments. When the Goods and Services Tax is applied, there will be 3 types of applicable Goods and Services Taxes, namely CGST, SGST & IGST. CGST – Central Goods and Services Tax: Revenue will be collected by the central government SGST – State Goods and Services Tax:   R evenue will be collected by the state government for intra-country sales (that is, sales in certain...
Post a Comment
Read more

KYC non-compliance

Govt deactivates ID numbers of 2.1 million directors The government began the process of deactivating the identification numbers of almost 2.1 million directors of companies that did not comply with KYC standards, according to a senior official. The director’s identification numbers (DIN), a unique number assigned to people who are eligible to be directors at meetings of registered companies, are being deactivated. They will be reactivated after paying a fee of 5,000 rupees along with the required form and the affected people could also face a lawsuit. The latest movement of the  Ministry of Corporate Affairs  also comes at a time when the government has intensified the crackdown on the front companies, which are suspected conduits for illicit cash flows. In June, the ministry decided to carry out the KYC process (Know Your Client) for all directors, including those who have been disqualified. The last date to comply with the new rules by sending the form ‘ DIR-3 KY...
Post a Comment
Read more