explain gst? state any five needs of introducing the gst.
Answers
Answer:
Goods and Services Tax is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. The need for GST in Indian Taxation System will add value at each stage and will set off the rates both at state and at central level. Introducing GST, will increase the efficiency of taxation, improves the economic growth and it will bring whole nation to one national market.
Answer:
The goods and services tax (GST) is a tax on goods and services sold domestically for consumption. The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller. The GST is a common tax used by the majority of countries globally.
Explanation:
1LESS IS MORE
The Goods and Service Tax (GST) came into effect from July 2017. It subsumes 17 different taxes levied by the Central and State/UT Governments.1
Source 1
2GLOBAL COMPETITIVENESS
The one nation, one tax system aims to improve India’s competitiveness in global markets. GST will ensure minimal cascading of taxes and thus, an anti-inflationary approach. This also leads to a reduction in the costs of doing business.1 Another benefit of GST is that no taxpayer is required to pay tax on advances received for supply of goods.2
Sources 1, 2
3EASE OF DOING BUSINESS
Uniform tax rates and structures across all States and Union Territories reduces multiplicity of taxes and compliance costs.1 There are 5 slabs under GST: Nil, 5%, 12%, 18% and 28%.2 Check-posts across the country were abolished, post the introduction of GST, ensuring free and fast movement of goods.3
Sources 1, 2, 3
4COMPOSITION SCHEME
The Composition Scheme brings greater simplicity and reduces the cost of compliance for small businesses. Small businesses having a turnover up to $214,530, now pay 1% flat rate and file a single annual return. Small service providers having an annual turnover of up to $71,510, now pay GST at 6% instead of 18%.1
Source 1
5ONLINE PAYMENT OF TAXES
A key feature of GST is the existence of a robust IT system1 for online registration, payment and filing of taxes for easier compliance. Click here to access GST portal.
Source 1