The Goods and Services Tax (GST) system could be a new system of indirect taxation system introduced by the govt. of India on first July 2017. it’s been thought of as a landmark reform within the country’s taxation regime with the target of simplifying the taxation system additionally as making certain simple doing business and transparency. we provide the best Gst Invoice Maker enforced with the concept of ‘one nation, one tax’, the GST system removes the cascading effects of multiple indirect taxes like VAT, Excise Duty & Service Tax levied by the central & authorities on the availability of products & services in India. it’s been conceptualized with the aim of ultimately reducing the tax burden on the common taxpayers of India. we provide the best Gst Invoice Maker.

Know the basics of GST

Here are some facts about GST:

  • Under the GST regime, only one single tax is applicable at variable rates on different items under various slabs.
  • For tax collection, goods and services are classified under five tax slabs viz. 0%, 5%, 12%, 18% and 28%.
  • The GST tax rates and all rules and regulations are governed by the GST council which comprises of the finance ministers of the center and the states.
  • All dealers or entities having turnover above a specified threshold limit are required to get GST Registration. They are the taxable persons under GST and are required to comply with all GST regulations.
  • Both the Central Government as well as the State Governments levy taxes on the goods and services, which is referred to as IGST or CGST and SGGST, respectively.
  • The GST rates have been modified several times since its launch. The revised rates were implemented on 22nd December 2018.
  • Service provider companies with a turnover lower than Rs. 20 lakh (Rs.10 lakh in North-Eastern states) are exempt from GST payment.

To support business deliver the goods GST compliance, GST consultants like Alankit restricted deliver help through custom GST solutions. Having over 20 years of trade expertise, Alankit may be a leading e-Governance service supplier in Bharat that facilitates on-line GST registration for all people and entities. we provide the best Gst Invoice Maker.

Advantages of GST in India

The Goods and Services Tax was introduced with the first objective of boosting India’s economy. Besides simplifying the indirect taxation system, GST has helped in clearing away the hidden prices on commodities/services, therefore benefitting the end-users. Some major blessings of the GST system are:

Easier classification :

The GST system has expedited in making a clear system with the simpler classification of product & services. However, the taxation beneath GST relies upon the idea of offerinstead of on this classification. we provide the best Gst Invoice Maker That is, if a group actiondoesn’tfall into the realm of offer, it’ll not be ratablebeneath GST. Moreover, litigation, arising from cases whether or nota selected item or activity is product or service, isn’tprobably to occur.

Better compliances :

The implementation of the GST system has sealed the meansfor less complicated procedures and compliances moreover as motor-assisted in simplewatching and pursuit of defaults or non-compliances. moreover, there had been multiple legal compliances beneathtotally different legislatures. But now, taxpayers have gotten things easier as legal norms solelybeneath one sculpturegot to be adhered to. GST is supported by the productsand repair Tax Network (GSTN), a totally integrated tax platform, to assist manage all aspects of GST. we provide the best Gst Invoice Maker.

Benefits for SMEs and start-ups :

SMEs and start-ups in India have a host of benefits awaiting them under the GST system which includes:

  • Ease of starting a business by lower compliances. Companies that have a business in different states & territories were earlier required to comply with multiple laws. However, centralized registration under GST has eased the process of setting up new businesses while also reducing the costs.
  • The minimized tax burden on new businesses. Earlier, it was mandatory for companies with a turnover of more than Rs 5 lakhs to register themselves under VAT. However, the limit under GST has now been extended to Rs 20 lakhs. This has provided relief to over 60 percent of the SMEs.
  • Efficient logistics leading to efficiency in delivery & cost savings. The entry tax for goods manufactured and sold in any part of India has been done away with under GST. Thus, it has paved the way for smoother transportation of goods by minimizing waiting time on check posts. A direct result of this would be significant savings on transportation costs.
  • Uniformity in the taxation process. Through a simple online mechanism, small businesses find it extremely easy to file their tax returns every quarter.

Product competitiveness:

Becoming at par with the international tax standards, the introduction of the GST system has ensured a discount in overall prices of production, thereby creating Indian merchandiserather more competitive within theinternational market. what is more, inflation is probably goingto stayin restraintbelow the GST regime.

The benefit to the government :

The GST system has ensured higher revenue generation for the govtbecause thevalue of aggregation has reduced. And, the govt is seeing a rise in remunerator registration. Also, with the systematic rules underneath GST, malpractices like corruption and sales while not receipts area unitunbrokenunderneath check.

Disadvantages of GST in India

Although the assorted aspects of the GST system influence be advantageous on the entire, nonetheless there arsure aspects which will be considered minor drawbacks. they’rementioned below well.

Increased implementation cost :

The overall method of guaranteeing GST compliance and tax filing has crystal rectifier to a risewithin the implementation value for the companies. This value refers to the expenditure or investment in resources like computers, accounting (GST), software system or coaching initiatives for GST specialists. Moreover, thevalue of doing business mounted within the initial few months of GST implementation.

The burden of compliances :

Businesses World Health Organization operate in a veryexplicit state area unitneeded to file returns three times in a very month. this suggests, a minimum of thirty six filings in a very year per state. this is often seen as a small inconvenience for the taxpayers.

The rise in operational costs :

GST has remodeled the meanswithin which taxes area unit paid. Moreover, to attain compliances, businesses area unitneeded to depend upon services by skilled GST consultants. This has diode to a furtherprice for smaller businesses for hiring GST consultants resulting in operational prices.

Implementation of GST has diode to a shortage of obtainable funds. Traders are facing problems in claiming tax refunds or shift refund due tosophisticated procedures.

The burden on SMEs :

Smaller business set-ups, particularlywithin theproducing sector, area unitbaby-faced with some challenges beneath the GST system. Earlier, those having a turnover of Rs one.5 large integer had to pay excise duty. However, currently any business with the turnover prodigious Rs twentyhundred thousand is needed to pay GST. SMEs with a turnover up to Rs seventy fivehundred thousand have the choiceto settle on the composition theme and pay only onep.c tax on turnover in part of GST and skill lesser compliances. howeverthe soleissuewhich couldhassle SMEs is that therealitythey’ll not be able to claim the input diminution. Hence, the choiceto settle on between higher taxes or a composition theme (leading to no claim on input tax credit) may be atroublesome one.

Impact on some industries :

Some tax experts believe the GST system could have negative effects as certain products have become costlier. For instance, GST would add up to as much as 8 percent to the cost of new homes and minimize the demand by about 12 percent. Similarly, the tax levied on some retail products at present is only a four percent tax. However, GST, garments, and clothes are likely to get expensive.

Some tax consultants believe the GST system may have negative effects as bound merchandise became costlier. as an example, GST would add up to the maximum amount as eightp.c to the price of recent homes and minimize the demand by regardingtwelvep.c. Similarly, the tax levied on some retail merchandise the moment is barely a four p.c tax. However, with GST, garments, and garments square measure possible to urged.

Similarly, the service sector like banks additionally feels the pinch. The industry is instrumental in the method of the export of services or products. Before the GST regime, a service tax @ Bastille Day was levied on the banking transactions. However, when the GST implementation, the speed has accrued to eighteen, thereby increasing the group auction prices, particularly in those imports or exports with vast transactions.

Many goods are not covered under GST :

Certain things like crudemerchandise – gasolene and diesel – don’treturnbeneath the GST orbit. this can be being seen as a serious disadvantage for oil firmsWorld Health Organizationarea unit unable to induce input reduction on fuel merchandise as those don’t seem to be taxed beneath GST. 

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