Introducing Goods and Services Tax (GST) has been a big tax reform in India. And so much time has passed since its introduction that questions like “what is GST Registration” do not sound right. So here is a brief introduction
All businesses involved in buying or selling goods or providing services, or both, should register for GST. But for below-listed persons, GST Registration is compulsory.
The Special Category States under GST Act are:
(a) Arunachal Pradesh, (b) Assam, (c) Sikkim, (d) Meghalaya, (e) Tripura, (f) Mizoram, (g) Manipur, (h) Nagaland, and (i) Himachal Pradesh. These states can opt for tax payable at a concessional rate.
To register for GST on the Government site, you need to follow the below steps. Cautiously & Accurately.
One of the benefits of GST is the elimination of multiple indirect taxes that existed earlier. So many taxes have been replaced. Taxes like excise, octroi, sales tax, Service tax, CENVAT, turnover tax, etc are not applicable anymore and all those have come under common tax called GST.
GST applicability has resulted in the elimination of double charging in the system for a common man. Through this, the price of goods and services has reduced & helping the common man saving more money.
GST brought the concept of “One Nation One Tax”. That unhealthy competition that existed earlier among the States has benefited businesses wishing to do interstate business.
From manufacturing to consumption, GST is applicable at all stages. It is providing tax credit benefits at every stage in the chain. In the earlier scenario, at every stage, the margin used to get added and tax was paid on the whole amount. Under GST the businesses are taking benefit of Input Tax Credit and tax is being paid on the amount of value addition only. GST has reduced the cascading effect of tax thereby reducing the cost of the product.
Because GST has reduced the cost of products, the demand, for some – if not all, products have increased. With the increase in demand, to meet the increase in supply, the employment graph has started going up.
The higher the demand, the higher will be the production. This results in a higher Gross Domestic Product (GDP).
Goods and services tax is a single tax that includes various earlier taxes
and has made the system efficient with fewer chances of corruption and Tax Evasion.
Manufacturing has become more competitive with GST eliminating the cascading effect of the tax, inter-state tax, high logistics cost. Bringing competitiveness as GST will address the cascading effect of the tax, inter-state tax, high log benefits to the businessman and consumer.
Under the GST regime, 17 indirect taxes have been replaced into a single tax. The increase in product demand means higher tax revenue for state and central government