Today, we are going to talk to you on the most urgent topic which is being discussed in the entire country but has spread throughout the world. We will talk in this article, what is the GST, and about the benefits and disadvantages of it.
From July 1, 2017 GST has been implemented in India.At 12 PM at the Central Hall of Parliament, both the President of India and the Prime Minister jointly pressed the start of the GST era by pressing the button. The dream of one nation forest tax of the Government of India has finally been completed. But still many people are unaware of the basics related to GST.
What is GST?
GST i.e., ‘goods and services tax’ is an indirect tax system, in which a similar tax will be imposed on the purchase and sale of goods and in the services sector across the country. With the implementation of this, it will get rid of taxes imposed on 17 types of central and state levels.
There will be tax of 0% to 28% on various items which will be applicable in every corner of the country in the same manner. This system is based on the concept of a national market in the Indian economy.
What are the advantages of GST?
1) A total of 40 types of indirect tax and goods and services will be freed from cess. Instead, we only have to pay goods and service tax (GST).
2) Service Tax, Sales Tax, Entertainment Tax, Purchase Tax, Central Excise Duty, Luxury Tax etc. should not be given anymore.
3) GST’s implementation will make things cheaper, which will lead to a decline in inflation.
4) The rate of GST on 81% percent goods will be 18% or less. Under GST, no tax will be payable in everyday things like jaggery, milk, egg, yogurt, salt.
5) GST has been linked to online connectivity (GST network), which will lead to transparency in business and it will be impossible to steal corruption or tax.
6) Small traders with an annual sales of less than 20 lakh will be exempted from GST.
You can also Check: How to register for GST Online.
If you are a businessman and want to understand GST very well how can you grow your business by following the GST rules then you are at the right place. Everything has been explained in a simple way.
What are the losses of GST
1) Banking and financial services will be removed from 15% slab to 18%, which will make these services expensive.
2) It will control every business by both central and state governments, under which compliance prices will increase.
3) Payment will be done through online connectivity, due to not being used by the system, small traders may have to face problems.
4) Some economists say that the implementation of GST will have a bad effect on the real estate market. The price of new houses will increase by up to 8%.
5) The aviation industry will suffer from it. Service Tax of up to 6-9% on air travel will now be taxed by 15% or more under GST.
6) A car, air conditioner, refrigerator, chocolate and all types of industrial intermediate will have a rate of 28% which is the highest rate imposed by any country in the world.
If you still have a question related to GST then you can ask in the below comment box.
You can also Check: How to register for Modicare Online Business.