7th June 2017
India is country of opportunity the government has initiatives like “Make in India” to boost to investment foreign investment in India. There many other steps such as Digital India, Start-up India and Smart cities to provide platform of opportunity for Young Indians to showcase their talent.
Suppose you to go restaurant and you order a meal Rs.300 the vendor ask you to pay Rs. 330 this you have to pay some extra amount that extra amount you is a form indirect tax (VAT, Service Tax etc).Presently India is a country where people have to pay multiple taxes in many forms.
GST is also a step to combine complex multiple taxes in India. GST is going to the biggest tax reform in India. Businessmen and emerging entrepreneur have to keep in mind the process GST registration so that they do not face any problem in future in GST filing or any other tax compliance.GST will business in India.GST Bill has been passed by the two houses of parliament and President of India.
GST registration has been simplified like e-registration and e-payment of duty has improved tax collections at the lower end of the taxpayer segment. It will lower logistics costs and will eliminate transport tax barrier in the Country for the faster move of transportation.
What will GST make difference?
India is major market in for the Globe. It is expected that GST will stimulate the economic growth.GST implementation in India will not only differ India internally but also externally amongst the developed countries which would enable a better application of ambitious strategies for business and trade. “Make in India” is the concept to boost ability of India in Global market
GST introduction fill the barriers occur due to the current Indirect tax. GST will increase transparency and also trim down the CENVAT and reintroduce a system to avoid the load of tax generally burdened by businesses at the time of final consumption.
Central Sales Tax (CST)
The Central sales tax is a form of indirect levied on sales or purchase of goods and services in the course of inter-state trade.GST will encourage department of revenue, ministry of finance, Government of India, to reduce CST by 1% as CST would be inconsistent with the concept under design of GST. Total incidence of duty on manufacturing will come down from the present level.
Service Tax and Central Excise
GST subsume Service and Central Excise Duty that can align service tax and central excise in order to meet the anticipated threshold of central indirect taxes. It is expected that government needs to put in place a system.
GST will raise India’s GDP since the GST will lower tax complexity in the country. In the past Arun Jaitley estimated that GST may likely increase India’s GDP by 2%.
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