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What is GST?

The much anticipated GST rollout is scheduled to happen in the Financial Year 2017-18, cutting compliance and improving ease of working for millions of small companies in India. By abolishing and subsuming multiple taxes to a single system, tax complexities could be reduced while tax base is increased substantially. Within the new GST regime, all entities associated with selling or buying goods or providing services or both must obtain GST registration. Entities without GST registration would not be capable to collect GST from customer or claim input tax credit of GST paid. Further, GST registration is required once an entity crosses the minimum threshold turnover of starts a new business that is definitely expected to cross the prescribed turnover.

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The Prime Minister approved. The constitution amendment bill for Goods and repair Tax(GST) during the Parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016) along with the ratification by fifty percent of state legislatures. Thus the existing indirect taxes levied by state and centre are all set to be substituted for proposed implementation of GST Portal by April 2017. This could be the biggest tax reform since independence plus a boon on the economy mainly because it will eradicate the shortcomings of your current tax structure and give one particular tax on source of all services and goods.

Benefits of GST :

Eliminating cascading effect of taxes.

Tax rates will likely be comparatively lower since the tax base will widen.

Seamless flow of Input tax credit.

Prices with the services and goods will fall.

Efficient supply change management.

Promote shit from unorganised sector to organised sector.

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