All about GST benefits in India: One Nation One Tax
Nothing is perfect, but GST is the best option available for Manufacturers, traders and consumers in India. And Why only India? Major economies (Except USA and that is also because of their law) of the world like France, Canada, Singapore already implemented it long ago. Can you imagine France implemented it in 1954? And Canada started it in 1991 that translate into 26years ago! And India takes 17years and all of the states approving to implement it. The point of the rhetoric is that GST is not harmful for honest Manufacturer, traders and consumers. It's ease the process of doing business. Below are its advantages
1. Previously a truck loaded with goods in Gujrat have to pay taxes in each states whose border it corsses. And there was paper checking. And all these takes both money and wastages of time. But after GST your truck loaded with your goods don't have to pay taxes in each border and waste time. You can earn faster if your goods reaches the destination faster. That's a huge impact if you think about it in a bigger picture.
2. Second big benefit is the relief from around 40 type of taxes. And you have to pay many forms for each type of taxes. But now You just pay GST and save your time.
3. Reduction in Taxes. Previously in common there was VAT around 14% and Service taxes 15% and other cess so in total approximately 30%. But the highest tax slab is 28% in GST.
4. Another long term benefit of GST is as it is transparent and software based so those businessmen who in past evade taxes, they will find it difficult and impossible to evade now. So as more people will pay taxes then govt will reconsider to reduce the tax rate of many products and ultimately benefit the trio of manufacturers, traders and consumers. As reduction in price will translate into higher sales.
5. There was no tax and no GST registration required on businesses with 20Lakh turnover per year. From 20Lakh to 75Lakh turnover per year will attract just 1% Tax for traders and 2% for manufacturers. After 75lakh will attract higher Tax rates. So small traders don't need to panic.
6. Traders will get Input Tax Credit. Means there will be no cascading effect of taxes like previous times. So the tax will be lower and they can pass the benefit of lower taxes to the consumers.
7. Foreign investors will find indian market more easy and as they will pour in cash in economy by partnering with local traders then the traders will get capitals to raise their businesses. For example, suppose a Smartphone company invest in india then they will partner with local dealers.
1. Previously a truck loaded with goods in Gujrat have to pay taxes in each states whose border it corsses. And there was paper checking. And all these takes both money and wastages of time. But after GST your truck loaded with your goods don't have to pay taxes in each border and waste time. You can earn faster if your goods reaches the destination faster. That's a huge impact if you think about it in a bigger picture.
2. Second big benefit is the relief from around 40 type of taxes. And you have to pay many forms for each type of taxes. But now You just pay GST and save your time.
3. Reduction in Taxes. Previously in common there was VAT around 14% and Service taxes 15% and other cess so in total approximately 30%. But the highest tax slab is 28% in GST.
4. Another long term benefit of GST is as it is transparent and software based so those businessmen who in past evade taxes, they will find it difficult and impossible to evade now. So as more people will pay taxes then govt will reconsider to reduce the tax rate of many products and ultimately benefit the trio of manufacturers, traders and consumers. As reduction in price will translate into higher sales.
5. There was no tax and no GST registration required on businesses with 20Lakh turnover per year. From 20Lakh to 75Lakh turnover per year will attract just 1% Tax for traders and 2% for manufacturers. After 75lakh will attract higher Tax rates. So small traders don't need to panic.
6. Traders will get Input Tax Credit. Means there will be no cascading effect of taxes like previous times. So the tax will be lower and they can pass the benefit of lower taxes to the consumers.
7. Foreign investors will find indian market more easy and as they will pour in cash in economy by partnering with local traders then the traders will get capitals to raise their businesses. For example, suppose a Smartphone company invest in india then they will partner with local dealers.
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