The Goods and Service Tax came into effect from July 1, 2017. It subsumes eight taxes at the Central level and nine taxes at the State level.
FIVE REASONS WHY GST IS GOOD FOR BUSINESS
1Less is more
The one nation, one tax system is expected to improve India’s competitiveness. Steps like a more transparent and comprehensive system of tax credits throughout the value-chain will reduce the cost of locally made goods and services.
3Ease of doing business
Uniform tax rates and structures across all States and Union Territories are expected to reduce multiplicity of taxes and compliance costs. There are four tax rates under GST: 5%, 12%, 18% and 28%. Exceptions include goods and services in the list of exempted items.
The composition scheme brings greater simplicity and reduces the cost of compliance for small businesses.
5Online payment of taxes
A key feature of GST is the existence of a robust IT system for online registration, payment and filing of taxes for easier compliance.