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Just what is GST?

The much anticipated GST rollout is defined to occur in the Financial Year 2017-18, cutting compliance and improving easy operating for countless small businesses in India. By abolishing and subsuming multiple taxes to a single system, tax complexities could be reduced while tax base is increased substantially. Beneath the new GST regime, all entities related to buying or selling goods or providing services or both must obtain GST registration. Entities without GST registration would stop allowed to collect GST from customer or claim input tax credit of GST paid. Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a fresh business that is certainly expected to cross the prescribed turnover.


The Prime Minister approved. The constitution amendment bill for Goods and Service Tax(GST) from the Parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016) together with the ratification by fifty percent of state legislatures. Thus the present indirect taxes levied by state and centre are common set to generally be substituted with proposed implementation of GST NUMBER by April 2017. This may be the main tax reform since independence along with a boon on the economy as it will eradicate the shortcomings of the current tax structure and still provide a single tax on flow of all services and goods.

Benefits of GST :

Eliminating cascading effect of taxes.

Tax rates are going to be comparatively lower as the tax base will widen.

Seamless flow of Input tax credit.

Prices in the products or services will fall.

Efficient supply change management.

Promote shit from unorganised sector to organised sector.


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