GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services which is to replace multiple taxes levied by the central and state governments. Thus, Goods and Services Tax (GST) is an indirect taxation in India merging most of the existing taxes into single system of taxation. GST is undoubtedly, one of the biggest fiscal reforms in India since Independence impacting each and every business whether small or large.
One of the key advantage of GST is the presence of credit chain which will be available from the stage of manufacture to the stage of final consumption unlike in present tax regime. This will help in eliminating multiple taxation on the goods and services. This will create a more competitive and more conducive business environment.
Advantages of GST are as under:
The entire foundation of GST is based on an IT infrastructure and the entire process has been designed to simplify the entire process starting from registration to filing of returns. As a result of this, one simply won’t have to run around to different different tax offices to seek separate registrations for manufacturing, selling goods, providing services etc. as all would be covered under just one law i.e. GST law.
Under the composition scheme tax will be levied at a nominal rate of 0.5% or 1% (for manufacturers) CGST and SGST each (as proposed). This levy is available to only small businesses dealing in goods and is not available to interstate sellers, e-commerce traders and operators, and service providers.
You can enroll for GST via the common portal of GST. Tax Aid can also help you with your enrollment. For more details click here.