GST - The Cutting-Edge Revelation in Taxes |
Posted: May 25, 2019 |
GST - The Cutting-Edge Revelation in Taxes It is important as a citizen of India to understand what Good and Service Tax (GST) is all about. This Indirect tax arrangement basically merges the Central Government levied tax, which is the Central Excise duty and Service Tax along with State Government levied tax, which is the VAT on retail sales, Entry Tax, Luxury Tax, Purchase Tax etc., on a One-Country-One-Tax basis. This allows free-flow of trade throughout the country. GST will be levied at the start, from the manufacturer or import until it ends with the retail. The pulses of GST for Administrations To the Government: 1) GST will help create a unified market space to boost foreign investments and “Make in India” campaign. 2) This will create harmony in law, procedures, and rates of taxes across states. 3) It will help obtain a better-quality environment for GST Registration obedience where the online filing of taxes, online verification of credits, transparency in the trail of transactions at every supply chain level. 4) Mutual practices of GST Registration, tax refunds, tax formats, common tax base and collective classification of goods and services will help administer close watch on decreasing corruption. 5) The involuntary increase in exports and manufacturing will help with unemployment, eradicating poverty and generating more financial aid. To the Trade and Industry: 1) With GST taxation where exemptions are less, ease in doing business is more. 2) The unified way of tax collection has eradicated double taxation on sectors with contracts, software and hospitality. 3) Since the need for maintaining too many tax records is lessened, the investment towards manpower is reduced further. 4) Abridged processes for GST Registration, returns, refunds, tax payments etc. 5) Reduced tax liability on goods and services equals more consumption, which in turn helps with more production resulting in the growth of the manufacturing industries. To Consumers: 1) Final prices of goods will be more visible as there is a set flow of tax credit between manufacturer, retailer and supplier 2) Drop in taxes, in the long run, will reduce prices of commodities and goods. 3) Small retailers will either be tax exempt or will pay low tax rates, thus allowing consumers to purchase from such entities to enjoy the reduced price. 4) Unemployment and more financial resources are generated. The GST Decision Makers The GST council is the significant decision-making committee that will take all-vital decisions regarding the GST. The Council prescribes tax rate, tax exemption, GST Registration, the due date of forms, tax laws, and tax deadlines, being conscious towards special rates and provisions for some states. The prime accountability of the committee is to make sure there is one cohesive tax rate for goods and services across the nation. The following are the rules and formats approved by the GST Council and have been prescribed to the public: Registration Rules and Formats Return- Rules and GSTP Formats, Mismatch Formats, Return Formats Invoice- Debit and Credit Notes Rules Payment Rules and Formats Refund Rules and Formats Input Tax Credit Rules Valuation Rules Transitional Rules and Formats Composition Rules and Formats Accounts and Record Rules GST Notification and Circulars The GST tax forum from time to time, to let the concerned people know of the modifications, issues frequent update and Notifications on Tax rates and similar matters. They are generally categorized under the following heads. Central Tax Notifications Integrated Tax Notifications Union Territory Tax Notifications All clarifications and communication of decisions to a large sum of people are done through the issuance of circulars. These issued circulars are majorly for orders that need immediate attention and compliance. To name a few of the most recent circulars will be - Central Tax Circulars Integrated Tax Circulars Central Tax Orders Removal of Difficulty orders GST reform will thus create one National stage, where the convergence of both State and Central tax laws will take place creating a common tax foundation. The availability of tax credit at every step of supply to the taxes paid omits duplicity in taxation. Goods and Services Tax Network (GSTN) acts as the IT pillar of support leading to translucence in tax, its accountability and cost-effectiveness to the taxpayers. Thus GST heightens the capability level to instantly raise the economic growth of the country.
|
||||||||||||||||||||||||||||||
|