1Less is more

The Goods and Service Tax (GST) came into effect from July 2017. It subsumes 17 different taxes levied by the Central and State/UT Governments.1

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2Global competitiveness

The one nation, one tax system aims to improve India’s competitiveness in global markets. GST will ensure minimal cascading of taxes and thus, an anti-inflationary approach. This also leads to a reduction in the costs of doing business.1 Another benefit of GST is that no taxpayer is required to pay tax on advances received for supply of goods.2

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3Ease of doing business

Uniform tax rates and structures across all States and Union Territories reduces multiplicity of taxes and compliance costs.1 There are 5 slabs under GST: Nil, 5%, 12%, 18% and 28%.Check-posts across the country were abolished, post the introduction of GST, ensuring free and fast movement of goods.3

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4Composition scheme

The Composition Scheme brings greater simplicity and reduces the cost of compliance for small businesses. Small businesses having a turnover up to $214,530, now pay 1% flat rate and file a single annual return. Small service providers having an annual turnover of up to $71,510, now pay GST at 6% instead of 18%.1

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5Online payment of taxes

A key feature of GST is the existence of a robust IT system1 for online registration, payment and filing of taxes for easier compliance. Click here to access GST portal.

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