Every Bit of Information One Needs to Know about GSTSamar Javed04 December 2019
GST or the Goods and Service Tax is one of the most important taxes that are levied in recent times in India. This is an indirect tax and alone this has replaced a handful of indirect taxes available in India. Indian government has announced the inception of this tax years before but it was only in 2017 when GST was introduced in India by the 122nd Amendment Act. so any kind of goods that a person wants to consume or any kind of services one wants to avail, he has to pay the GST. This alone replaces a lot of indirect taxes that were bothering the small businessmen and other shop owners in India.
Earlier it was VAT
Before GST was introduced in India, the Value added tax or the VAT was doing rounds. Here in this case, the consumer has to bear a lot of burden of tax. From procuring the raw material till the consumer consuming the end product. This type of tax is levied on different stages and that makes it a bad choice for a country like India. So the consumer that consuming the end product has to bear a lot of tax. This is a stage type of tax where one has to pay a lot of money. When you are consuming the end product, you will find that you have submitted tax almost equal the price of the product.
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In the case of VAT, you first need to buy the raw materials from the market and here you need to pay 1st layer of VAT. Now the raw material goes to the manufacturer who manufactures the product from the raw material. After the manufacturer produces the product, they send that to the wholesaler. Now the manufacturer sells the product to the wholesaler adding VAT and Excise Duty attached to it. Now the wholesaler sells this to the retailer who pays another layer of VAT while buying it. Once the retailer buys the product, it is finally out for the end users to grab these products. The end users or the final consumers pay another layer of VAT while buying the product from the retailer end.
Difference between VAT and GST
In the case of VAT, the tax value gets increased or added with every step of the product goes ahead. So the end user has to bear a huge amount of tax to be paid while consuming the product. In case of GST, people have to pay the same amount of tax at every step. So the amount of tax stands same till the end. The end user doesn’t need to bear a lot of tax in the end. This thing makes lives easier for a lot of people out there. GST is way easier than any other tax systems ever levied on consumers in India. GST is levied on the very final stage. So the consumer pays the tax at the last stage and that’s why it is way more convenient than any other common indirect taxes levied across the world.
How GST Changed the Tax Scenario
So the GST has changed the tax scenario in India. It has subdued VAT and other indirect taxes and hence it took a major role in forming a good future for Indian economy. The GDP growth was huge after GST and the GST council is a batch full of extremely talented and well balanced people that can change the economic scenario of a country! The GST council in India is comprised of a set of well educated and well versed people. So the decisions they have been making are going in the right direction and it indirectly helping the country to grow. Hence it directly is helping the GDP to go to the sky high!
Good for The Digi - Savvy Indians
India has become a digi-savvy country. It has several digital payment platforms working successfully and making it a habit among natives. So the technological improvement of India can be seen pretty clearly. The whole GST scenario is properly and wonderfully curetted under the technical excellence of Indian technologists. As everything is coated under super healthy technical schemes, it means all your transactions are pretty safe and you can make them easily and efficiently. The experts are working for you and they are taking good care of your transactions. That makes it a wonderfully digitized country that can take care of its tax related problems.
Good for Small Industries
India is a country where big industries are way lesser in number than the small micro and medium enterprises. In India, you will find several people making businesses from small resources. But then at the end of the day you have to depend on the tax policy makers to bring something in your favor. The small business sector always faces trouble when it comes to fix its tax related problems. Hence GST is a boon for these small entrepreneurs. They will never face such tax related problems when it comes to GST. The features of GST are very easy to understand. If someone pays attention to the details of GST, he would definitely understand what is stands for.
Easy Tax, Can be Paid Through Online Transactions
So the taxpayers before GST had to pay tax throughout the year in different slabs. It was kind of hectic for all of them. But then with the initiation of GST, you will easily get a chance to pay taxes once a year. All the payments can be easily paid through online facilities. In India, people are well versed with online payments. Hence it would be easier for them to pay the tax through online method. It seems easier and this is one of the most amazing features of the revolutionary online payment method of digital India. People that are associated with startups do not have enough time to visit tax offices and pay their tax. Then online methods are way easier and are a lot of convenient for all of them. Everything in this world has a good and a bad side of it. This rule is followed for GST as well. It also has some drawbacks. But those drawbacks are pretty tiny when it comes to calculation of its better side.