Now, we have long been quite familiar with the term GST. Here are a few more of its advantages !
GST or Goods and Services Tax is considered as major Tax reform policy in India. It has been implemented for quite some time now. So, we all have some idea about it. But there could be still something that you may not know about GST.
A majority of economists are quite positive about its effects. However, here are a few facts highlighting its advantages.
What is Goods and Services Tax all about?
The Goods and Service Tax -GST is a taxation system where there is a single tax for goods and services. This taxation system is meant to create a single taxation system in the entire country for all goods and services.
GST is a transparent Tax and also reduces all other indirect taxes. With GST implemented a business premises can show the tax applied in the sales invoice. This would help the customer to know exactly how much tax they are paying on the product or service they have bought.
GST will not be a cost to registered retailers, So, there won’t be any hidden taxes. This will reduce the cost of doing business. Or put in other way, it would in effect lower the business cost. This in turn will make export more competitive.
GST can also augment diversification of income sources for Government other than income tax and petroleum tax.
Under Goods and Services Tax, the tax burden is divided equally between manufacturing products.
In GST System both – the Central GST and State GST will is charged on manufacturing cost and is collected on point of sale. This is certainly advantageous for buyers.
Well, and this tops it all. Now you can forget about the Multiple taxes like Octroi, Central Sales Tax, State Sales Tax, Entry Tax, License Fees, Turnover Tax etc.
Good for business too!
Doing Business is now easier and more comfortable as the entrepreneurs can get rid of all hidden taxes. This means more trust of the customers. This obviously means more business!