Benefits of GST in India
Goods and Services Tax, commonly called GST, is a comprehensive indirect tax designed which is designed to take into account excise, VAT, and service tax under one roof. Let’s find out the Benefits of GST in India and learn key facts depicting why the Indian Government has empower this indirect tax in our country.
Goods and Services Tax came into rule to make tax system in India easy and flexible process. It aims to impose common tax rates and procedure to erase the economic barriers from the country. Advantages & Disadvantages of GST will help you know its impacts on your life. So scroll down the page and get to know about the Benefits of GST in India.
Benefits of GST in India
Good and Service Tax will have an influential impact on almost all the phase of the business operations in the country such as instance, pricing of products and services, supply chain optimization, IT, accounting and tax compliance systems.
GST Advantages And Disadvantages
Advantages of GST
- This transparent tax is introduced to reduce number of indirect taxes levied in India.
- GST will not be a cost to registered retailers and hence no need will arise to hide taxes and also the cost of operating a business will be inexpensive.
- It will benefit the people in long run as the prices will come down which in turn will result in more growth of the companies as their product supply will increase.
- It will boost up the production and distribution of goods, services.
- GST will result in equal tax distribution between manufacturing and services and hence maintaining the balance in the country’s economy.
- Goods and Service tax will be imposed on the finished goods just like VAT principle and won’t be levied at various levels. This in turn will result in erasing major economic distortions and hence boost up the development of national market.
- With the help of this, the government will be able to build a corruption free tax administration.
- GST is supported by the GSTN, which is recognized to be an integrated tax platform that deals with prospects of GST.
Check Recent Changes in Rule/Rates: GST New Rates
Disadvantages of GST
- According to some economist, GST would give a negative impact on the real estate market as rather reducing the cost of new homes it will increase such cost by 8 percent and reduce the demand of new homes by about 12 percent.
- GST would result in added cost to branded garments and clothes.
- Because of this tax, the aviation industry would suffer adversely. Currently, the service taxes on airfares range from six to nine percent. After imposing GST, this rate took a hike of fifteen percent.
- Some Experts explained that CGST, SGST are just new names for Service Tax or Central Excise VAT & CST and hence, there would be no major changes or deduction in the number of taxes imposed previously.
- Adoption to the new GST system and timely changes in such tax would result in troublesome situation.
Get Toll Free Customer Care No: GST Helpline Number
The President must constitute a Goods and Services Tax Council within sixty days of this Act. The GST Council expects to build up a blended national market of goods and services.
Composition Of The GST Council
The GST Council is to consist of the following three members:
- The Union Finance Minister (as Chairman),
- The Union Minister of State in charge of Revenue or Finance, and
- The Minister in charge of Finance or Taxation or any other, nominated by each state government.
Functions Of The GST Council
These include making recommendations on:
- Taxes, cesses, and surcharges levied by the centre, states and local bodies which may be subsumed in the GST.
- Goods and services which may be subjected to or exempted from GST;
- Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply.
- The threshold limit of turnover below which goods and services may be exempted from GST.
- Rates including floor rates with bands of GST;
- Special rates to raise additional resources during any natural calamity.
- Special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
- Any other matters.
Check Out: GST Registration Procedure
Alcoholic liquor for human consumption is exempted from the purview of the GST. Further, the GST Council is to decide when GST would be levied on:
- Petroleum crude,
- High speed diesel,
- Motor spirit (petrol),
- Natural gas, and
- Aviation turbine fuel.
Note: So these are the Benefits of GST in India/ GST benefits. Now you can easily know about the Goods and Services Tax with the help of these key facts. If you want to get updated with more new information concerning Goods And Service Tax Benefits, keep in touch with through our web portal.
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