“ONE NATION, ONE TAX, ONE MARKET”
GST stands for goods and services tax. Benefits of GST has given a major boost to the ‘Make in India’. GST is the type of tax under which all imported goods will be charged with integrated tax (IGST) which will be more equivalent to central GST+ state GST. Under which the exports will be zero rated in entirely unlike the present system where refund of some taxes is not allowed due to the fragmented nature of indirect taxes between the center and the states.
GST act states that all transactions and processes only through electronic mode-non intrusive administration. it allows only PAN based registration, that registration is also only when the turnover is more than Rs. 20 Lac. There is option of voluntary registration as well. Benefits GST has given many to the country such as reduction in cascading of taxes, overall reduction in prices due to which there is decrease in inflation. Common national market, benefits to small taxpayers due to which there is ease of doing business. The biggest benefit is that there is decrease in ‘black’ transaction because of non- intrusive electronic tax system and self- regulating tax system. Due to GST the customers are more informed, poorer states to gain and many more benefits has taken place after the GST has adopted by the government. This change in tax has bring more employment, boosting the economy, increase in export etc.
GST has brought the benefits to all the stakeholders i.e. to industry, government and to the citizens. It is expected to lower the cost of goods and services, boost the economy and make our products and services globally competitive. GST aims to make India a common national market with uniform tax rates and procedures and removes the economic barriers, thereby paving the way for an integrated economy at the national level. GST is a destination based consumption tax. It has been designed in a manner so that tax is collected at every stage and the credit of tax paid at the previous stage is available to set off the tax to be paid at the next stage of transaction there by eliminating cascading of taxes. This eradicates “tax on tax” and allows cross utilization of input tax credits which benefit the industry by making the entire supply chain tax neutral.
GST is largely technology driven. The interface of the taxpayer with the tax authorities is through the common portal (GSTN). There are simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc. All processes, be it of applying for registration, filing of returns, payment of taxes, filing of refund claims etc. , is done online through GSTN. The input tax credit will be verified online. Electronic matching of input tax credit all – across India will make the process more transparent and accountable. This will encourage a culture of compliance. This will greatly reduce the human interface between the taxpayer and the tax administration leading to speedy decisions.
Reference – GST ACT
This Article Written by SAKSHI AGRAWAL, Student of Indore Institute of Law.
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