How GST is Favoring Businesses in India | The Infoation

How GST is Favoring Businesses in India

Introducing GST has revolutionized the recurring tax system as well as the regular business practices in India. GST has brought numerous advantages such as easy return filing procedures, transparency which would reduce tax-associated corruptions. Furthermore, the GST has simplified tax compliances for traders and thus the revenue base has expanded drastically. Before implementing GST, the number of assessee was close to 65 lakh, but within two years of GST execution, the assessee base grew by 84 percent and reached 1.2 crore.

GST enables the taxpayers to organize their business and accounting processes and help them yield utmost tax benefits. Let's read about how GST is benefiting businesses.

 Improves Competitiveness

 

GST is one nation, one tax system. This system strives to elevate India's competitiveness in global markets. Implementing GST has reduced the levels of taxes and has been a measure to cut down inflation. Thus, gradually, reduces the cost of carrying out business. Besides, GST does not demand tax for the advances obtained for the goods that are yet to be supplied.

Cheaper and Simpler Compliance

GST has minimized the compliance cost and has simplified the procedures making it easy for the small and medium-sized enterprises to carry out their businesses. The GST exemption limits have also been raised from 20 lakh to an annual turnover of 40 lakh. Also, the businesses that have turnover up to 1.5 crore would gain a composition scheme to pay only one percent of flat rate and file only one annual return. While, small service providers obtaining an annual turnover of 50 lakh could pay GST at six percent instead of 18 percent. Additionally, after implementing GST several check-posts have been scraped out to ensure quick goods movements.

Scope to Expand Businesses

GST has encouraged the small and medium-sized enterprises to embrace digitalization. This move has in turn aided the country to quickly adapt to digitalization. By clinching digitalization, the business procedures get transparent, eventually, various mistakes and other fraud activities could be eliminated. The organization could easily obtain goodwill in the market that will ease the process of expanding the business further. Alongside, GST has enabled the organizations to spread across the country to do business, as it has curbed multiple taxes and inconvenient transaction processes.

GST offers various benefits for the businesses, especially the small and medium enterprises. This system enables online tax payments making it flexible and transparent for the taxpayers. Just by mastering a few norms set by the GST council, the organizations could streamline their accounting process and obtain several other benefits to elevate their business.