Introduced on 1 July 2017 the most revolutionary taxation system in India Goods and Service Tax commonly known as GST has incorporated all the separate taxes into a single tax with the slogan “One nation One tax”. A single comprehensive tax regime GST has been implemented by the government of India to resolve the complexity of the previous taxation procedure and Gst Suvidha kendra has been established in all parts of the country to assist people in need.
But since its inception, it is still the topic of debate whether this GST regime is a wise decision or not.
Henceforth, Indians are more fascinated to know the advantages and disadvantages of GST
Today we will delve into its advantages and disadvantages in this post. Continue reading it.
Advantages of GST
Some key points to know about GST implementation in the country
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Merges all the tax into a single tax: By merging all the taxes like central excise, sales tax, service tax, etc. into a single tax, the current procedure of taxation has been simplified and becomes easy to understand.
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Termination of Cascading effects: Before the implementation of GST, there was no such provision to set off against VAT on a service tax or on consumer goods. It might be pretty intricate for the taxpayers, so GST is framed to diminish the burdens of multiple taxes and lower the cascading effects of multiple taxes.
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Easy to Access: With the setup of Gst Suvidha kendra login, portal complexity of tax filing has decreased and anyone can access the portal by sitting at their home and can get the tax returns directly in their account.
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Enhancement of Foreign Direct tax: Due to the abolishment of multiple taxes and increased transparency India has become the most favorable destination for foreign investors.
Disadvantages of GST
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Increased tax burdens: Earlier businessmen with a 1.5 crore yearly revenue had to pay excise duty, but now it is constrained to pay for the SMEs having a 40 lac yearly revenue.
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Compliances burden: It is necessary for companies to register in all the states where they are operating under the new GST regime and it is essential for companies to keep electronic records, GST-compliant invoices, and file return register on the Gst Suvidha kendra login portal. Meeting with all the compliances of GST registration procedure resulting in the enhancement of the costs in the current taxation system.
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