Make a short list of the advantages of GST
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Explanation:
Advantages of GST
Upcoming of Common National Market. ...
Elimination of Cascading Effect of Taxes. ...
Increased Exemption Limit for Small traders or Service Providers. ...
Small Businesses Benefit from the Composition Scheme. ...
Reduced Tax Compliances as Number of Tax Returns to be Filed Under GST Has Come
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- GST has brought together a number of indirect taxes under one umbrella, simplifying taxation for service and commodity businesses.
- Experts believe that costs of products and services will be reduced in the long run with the introduction of GST. This is because the cascading effect of a series of VATs and taxes has now been erased.
- Service provider companies with a turnover lower than Rs.20 lakh are exempt from paying GST. In case of North Eastern states, the threshold is at Rs.10 lakh. This will help the small businesses avoid lengthy taxation procedures
- Companies with a turnover up to Rs.75 lakh under the GST taxation process can benefit from composition schemes and pay only 1% tax on their turnover. This will help them follow a simplified taxation process.
- GST has reduced taxes on certain goods by 2% and others by 7.5%, such as smartphones and cars.
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