With the implementation of the new tax system of GST once again the tax system and sources of revenue for a state are in the limelight. GST or the goods and also services tax bill in 2015 was passed in the Indian parliament. The thought of the GST in the nation was debatable and has been evolved for nearly more than a decade. After passing in the parliament, the bill was presented to the lower house. Subsequent to clearing the bill in both the houses, the new tax system of the GST came into force, transforming India’s indirect regime of taxation altogether. Here will be discussed a few advantages of the GST to small businesses and start-ups.
The goods and also services tax or GST makes the VAT or value-added tax, realised at all phases within the supply chain having credit permitted for any tax shelled out on inputs attained for use in effecting the supply. Hence, it will be the end consumer who is needed to pay and bear this tax being the last entity or person within this supply chain. The implementation of GST in the country is thought to lead in a big way to render simply indirect tax structure at both levels of the state and the central governments. So it replaces the multiple types of intricate taxation that were prevalent in India.
GST shall perk up ease of commencing business in the country
At the time of commencing a new enterprise in India, businesses used to obtain start-up India registration for VAT from the sales tax office of the state. Because every state had various processes and fees meant for the value added registration, it was difficult for businesses functioning in more than one state to attain and keep up compliance with the value-added tax regime.
With the introduction of the goods and also services tax or GST in the country, the modus operandi shall be standardised and centralised akin to service tax registration. With the GST system, the enterprise shall now not have to acquire multiple values added tax registration because only one GST registration shall be applicable all through the country. The process of getting GST registration shall as well be standardised, in this manner improving the convenience of commencing a new enterprise in India. So with ease apply start-up registration online for quick processing of your application.
GST shall perk up the convenience of carrying out business in the nation
Before, businesses such as computer service and sales and restaurants that sold goods and offered services by way of the package needed to comply with both value-added tax and service tax rules. It gave rise to intricacy for the enterprises, and they had to work out taxes for the deal founded on various rates meant for different products. By the implementation of the GST, the dissimilarity amid services and goods shall not exist now, in so doing rendering compliance easy. Plus, creating invoice shall be easy for enterprises because merely one rate shall be adopted.