The launch of GST has left most businesses in a tight spot. Here are 10 advantages of GST that will uplift your impressions about the biggest tax reform of India since its Independence.
It is advantageous for companies as people will purchase more regularly due to price reductions.
One Time Transaction
Transaction will only occur a single time at Revenue Neutral Rate (RNR).This has been settled by both the Central and State Goods and Services Tax departments, (CGST and SGST).
Employment and Exports
The Central and State governments will be benefitted by GST as it is set to increase industrial activities, exports and employment opportunities.
GST makes the revenue process less complicated. It will be substitute multiple of direct and indirect taxes.
According to HDFC, GST will enhance GDP growth in the long run as the trade is expected to shift from the Unorganized sector to the Organized sector, consequently, expanding the GDP foothold.
GST supports a tax organization that is completely transparent. There will be less corruption as fewer powers have been designated to government officers.
Enhance growth in weaker states
Interstate Laws that charged 2% have been completely annulled which can help freeing the production and transportation. This can create opportunities for under-developed states and help them grow.
Registration has become easier as GST has centralized registration. It makes it much simpler as one only needs to go through a standardized procedure to start a business.
Automation of the taxes would help the finance industry and IT industry to thrive. There will be a higher demand for Chartered accountants, as well as for apps and softwares that cater to GST related resources.
Elimination of Inter-state taxes
Taxes levied on goods and services will be uniform throughout the country. The price of goods will not vary in different states. And hence, create a more expectable market.