GST is one of the most progressive and transparent tax systems in the world. But you might still not know the advantages of GST despite it being among the most progressive tax system in the world. This article highlights some key advantages of GST so that you get a clear understanding of why GST is such a great thing and the positive impact of GST on Indian economy:
- Extremely good for Micro, Small & Medium Enterprises
The benefit of GST is that it is a single tax rate. It means that every manufacturer will have to pay the same tax rate on his sales. This ensures that small and medium enterprises get a much better deal compared to large corporations. Large companies have to pay more taxes because they are more likely to be able to absorb it. However, small businesses do not have the resources or ability to pay such huge taxes.
Additionally, GST has been introduced to make the tax system more transparent, efficient and simple. It is expected that this will help micro, small and medium enterprises (MSMEs) better manage their taxes. Under GST, MSMEs have been provided with two benefits: they can claim input tax credit even when they pay a higher rate of tax on their output, and they can file returns online anytime. These two benefits will help them save time and money.
- GST has strong technological support
The Government along with GSTN(Goods and services tax network) has introduced a fully integrated GST software package for businesses, which includes a pre-paid mobile application that can be used to file returns and pay taxes. The GST software is available on all approved devices including smartphones, tablets, laptops and desktop computers. It also supports e-filing through the Ministry of Finance’s stable portal. This feature helps businesses to file their returns quickly and conveniently without having to visit a physical tax office.
- GST is a step toward a stronger future for the country’s economy
The GST law is one of the most comprehensive and progressive laws in the country. It provides a framework for the development of India into an economic superpower with good governance and strong institutions, which will further strengthen our economy as a whole.
- Simplified the process to pay taxes
In a country like India, where more than 100 million people are involved in business activities, it is very difficult to keep track of the tax paid by different sellers and buyers. The GST has simplified this process by making it easier for businesses to file returns and pay taxes in one place without having to deal with multiple authorities.
- Easy registration process
The GSTN portal has been set up by the government for the online registration of taxpayers and exporters/importers. This makes it easy for businesses to register themselves on the portal and submit their returns electronically as well as pay taxes within a short period of time after filing them online.
- Lesser compliance
The tax incidence has been reduced drastically with the introduction of GST which will help reduce the compliance burden on businesses as well as make it easier for taxpayers to have access to more accurate data about their business operations.
The fact that there are fewer compliances under different types of GST than earlier taxes such as central excise duty (CED) and Value Added Tax (VAT), makes it attractive for people of all sections of society to enrol under it and avail of the benefits.
