The Goods and Services Tax scheme Or GST has changed the whole business tax facility since intel introduction in 2017. Small and medium scale industries now do not have to file multiple tax returns. Instead, they only need to file GST.
Each business operating in India has to enroll in the GST scheme and get their GST certificate from the authority. They need to display the certificate at their business location to ensure their consumers can easily check it. Besides that, they also need to follow the gst bill format for their invoices. In this article, you will get a complete guide about GST including gst benefits.
Each business is assigned a 15 digit GST code. The first two digits are the state code of GST, It is then followed by the PAN number of the business or the business owner. After this comes the cost of the number of business listings in a particular state. Then comes the alphabet “Z”. In the end, lies the Check Code or unique code.
GST has changed the commercial tax filing procedure a lot. There are multiple gst benefits and the small and unorganised business sector has earned a lot of business coped after its implementation. The gst benefits include-
The proper and simple tax system
The biggest benefit of GST is the proper tax system. GST allows businesses to pay only a single tax and come under a single tax system. It is less complicated than filing for separate taxes like VAT, service tax etc. Hence, small and medium industries now can easily save their money and time by filing GST. On the other hand, businesses can now easily file for their tax without the help of any tax consultant.
Mitigation of cascading effect
With GST, the government now is able to use a business channel that ensures seamless tax flow. . GST also allows the consumer to be included in the whole business system. Everyone from the manufacturer to the consumer- all are the part of the business and the tax network. At this moment, the consumers also pay the tax for the services or goods they avail themselves of. This in turn helps the businesses to remain in the tax loophole. It also does not burden only the seller or manufacturer for submitting tax solely.
Proper regulation of the small and medium scale industries
In India, the small scale individual business and medium scale businesses are often scattered and not organized, Tshi unorganized sector makes a large part of the taxpaying community, With GST the government can easily identify these businesses, The new tax system has allowed businesses to come under the protection of the government and also get better facilities.
Better scope for consumers
Consumers now have a better scope for asking for the needed service. Business holders now have to get their GSTN and display this, If the consumer is not satisfied, they can easily check the seller’s authenticity through online GST verification. Hence, the new law has made the consumers more adapt and ask for what they need in a legal way.
In short, gst benefits have provided Indian business with a properly structured sector and more scopes for the small businesses to grow.