Goods & Services Tax : A Game-Changer for India’s Economy and Business
- Making Taxes Simpler and Fairer: GST makes it easier for businesses and consumers by allowing smooth tax credits at every step of the production process and across different states. This helps reduce the overall tax burden on the final buyer.
- Helping Small Businesses: GST has made it easier for small businesses by increasing the limit for registration. Now, businesses with a turnover up to Rs. 20 lakh don’t have to register for indirect taxes. This change has exempted many small traders and service providers from paying taxes.
- Special Plan for Small Businesses: Small businesses with a turnover between Rs. 20 to 75 lakh can choose a simpler way of paying taxes under the composition scheme. This option reduces their tax and paperwork, making things easier for them.
- Easy Online Processes: GST has moved the entire tax process, from registration to filing returns and making payments, online. This is helpful for businesses, especially start-ups, making the whole system more convenient and transparent.
- Less Paperwork for Businesses: GST has combined many different taxes into one, reducing the number of returns and paperwork for businesses. For example, now a regular taxpayer only has to file 12 returns in a year, compared to 37 in the past.
- Boosting Indian Businesses: GST has helped in lowering production costs, controlling inflation, and making business operations more efficient. This makes Indian goods and services more competitive both within the country and globally.
- Stopping Tax Cheating: GST has a strong computer system that keeps an eye on how goods and services move from one place to another and between different states. This system helps prevent people from avoiding taxes or cheating, making sure everyone follows the rules.
- Making Money Collection Easier: GST is expected to make it cheaper for the government to collect taxes. This means the government can use its resources more effectively, leading to better money collection.
- Simple and Clear Tax on What You Buy: GST is one tax that is added only to the final cost of what you buy, not at every step. This makes the tax system easy to understand and fair. It also reduces the chances of corruption and legal problems.
- Less Tax for You: GST is likely to lower the total tax you have to pay because the average tax rate is expected to go down. This can give you more money to spend on things you need, boosting both the demand and supply of goods and services.
