GST is the biggest and most anticipated indirect tax reform in the Republic of India. It may also be known as Good and Simple Tax because of its simplicity. Goods and service tax abolished various multiple taxes into one tax, reduces tax complexities, single return etc.
Goods and Service Tax is the major factor to improve India’s World ranking in Ease of Doing Business. GST is the major contributor to increase the taxpayer base in India by bringing in Micro and Small business in India.
Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to get register themselves under GST. Those entities who supplies Goods or Services through Online have to register themselves under Goods and Service Tax irrespective of Turnover. Registration under GST is mandatory once the assesse crosses the turnover prescribed under Goods and Service Tax law. New entities are required to obtain the GST Registration when it is expected to cross the prescribed turnover.
Entities without GST registration is not allowed to claim input tax credit of Goods and Service Tax paid.
As per the extant law, registration for TCS would be required in each State / UT as the obligation for collecting TCS would be there for every intra-State or inter-State supply. In order to facilitate the E-commerce operators to obtain the GST Registration in each UT / State, he may declare its Head Office as its place of business in that State / UT where it doesn't have a physical presence.
There are provisions under the GST law which provide for the grant of 90% refund on provisional basis within 7 days from the filing of registration keeping in mind that working capital of the business will not be blocked.
On import, Customs duty and cess as applicable; IGS; GST compensation cess is levied. However, IGST and GST compensation cess shall be paid, in form of GST Input Credit, after adding all customs duties and customs cess to the value of imports.
GST eliminates the cascading effect of tax
GST is a comprehensive indirect tax that was introduced to bring indirect taxation under one roof. GST eliminates the cascading effect. Cascading tax effect may be described as ‘Tax on Tax’.
Integrated Indirect Taxes
GST is an Integrated Indirect Tax in India. With the implementation of the GST various indirect taxes has been eliminated such as Service Tax, VAT, Excise, Custom Duty etc.
GST repealed various other taxes VAT, service tax, Excise etc. into one tax i.e. GST. Earlier, each tax has its own registration, returns, compliance and assesment. Now GST has the integrated return.
Simple and Easy online procedure
The complete process of GST Registration and Return filing is made online, transparent and very simple. GST also repealed various registration and returns like excise, vat, service tax into one Registration and One Return i.e. GST. GST also proves “One Nation One Tax”.