GST was first introduced in the parliament of India on 29.03.2017 and launched on 01.07.2017 after getting approval. It was launched under a campaign “One India One Tax”. India is not the only country who levied GST; it was first introduced in France in 1954 and then adopted by Japan, UK and many other countries. As GST is launched recently in India, to understand new tax structure you need a GST Registration Consultant.
You must be eager to know what GST is.
GST is known as Goods and Service Tax. It is made to replace many other taxes that were applicable to transactions of goods and services. Whenever a good or service is selling from one state to another state or within the state several taxes were imposed on it such as:
- Service Tax
- Excise Duty
- Custom Duty
- Security Transactions
- Stamp Duty
- Entertainment Tax etc.
All these taxes have been removed now and only GST is implemented to make the complicated tax structure simple for everybody.
Let’s see the benefits of implementing GST in India.
It acts as a revolution in the field of taxation. From giant businesses to small & medium industries to individual shopkeepers and end-user everyone is benefited through GST. Some common benefits are:
- GST is made by replacing the web of indirect tax.
- It is a clear and transparent tax.
- If you are a registered trader it will not cost you high. You can get your GST registration number via GST registration in Delhi online.
- It includes no hidden taxes.
- It aids you to run business with fewer charges.
- The GST brings down the selling price to increase the consumption of goods and benefiting all people, companies or manufacturer.
- The goods produced and distributed using services and contrary.
- The previous tax system demanded a separate calculation of transaction value of goods and services which was a hectic, lengthy and costly process. The same has been eliminated by GST.
- GST is followed by an integrated tax system that has put the taxation into equilibrium between goods and services.
- The GST is based on VAT and imposed at the last destination of consumption.
- It escapes the economic distortion and develops one common national market.
- GST emphasis on creating a lucid and corruption free system.
- GST helps to add more employment to the country by reducing production cost and accelerating consumption.
- GST has boosted the revenue generation for state and central government by replacing seventeen indirect taxes.
- GST has accelerated the GDP growth by 1%-2% by increasing demand and supply.
What are the components of GST?
The two components of GST are:
CGST – Central GST
SGST – State GST.
If you are new to GST, connect with any GST consultants in India who will guide you for GST company registration which is mandatory now if your business is related to production and supply of goods and services.