GST is the game-changer for Indian taxation. This all-encompassing indirect tax, replacing the majority of the central and state taxes since July 2017, streamlined the whole process and brought much-needed uniformity in the taxation of goods and services.
So, what is GST and how does it benefit businesses and the Indian economy? Let's dig a little deeper into this transformational tax reform.
What is GST?
GST is consumption tax-based on destination charged on the supply of goods and services meaning in practice at every point in the chain of supply. In nutshell, practically that is where GST is payable since it is this amount of end customer who tops up the costs of whatever is sold or provided.
Suppose this to be the case where the product passed three stages before reaching you: that of manufacture, wholesale, and then to a retailer. At every stage, it attracts GST, according to value addition at that particular stage. The relief is that when one business pays GST at some particular stage, he can recover the same on input as input tax credit. Thus, it prevents the vicious cycle of paying tax on tax.
Why GST is Advantageous?
GST has proven advantageous for consumers as well as businesses in India and the economy. Let's now consider a few of them:
Eradication of Cascading Tax: As has already been mentioned above, the GST cancels out the impact of the cascading tax. That means it reduces the load of taxation on businesses and on consumers. It renders commodities and services cheaper and makes people consume more of these, which will then make the economy boost also.
Simplified Tax Structure: The GST has brought in one system, removed this web of indirect taxation, and does make doing business out-of-state so much easier, which reduces the compliance burden of the firms besides cutting the cost of taxation administration.
Greater Transparency: GST introduces much more transparency in the taxation process, hence making it easier for businesses to understand the tax liabilities and compliance with regulations. The scope of tax evasion and corruption gets curtailed.
Economic Growth Enhancer: GST has emerged successful in enabling India to have one single common national market and ease in business practices which are easy to adapt and increase economic growth in India.
Extra competitive advantage for the businesses in Indian was given by the introduction of GST in India for competitiveness in the international markets
Generated government revenues through GST, that is being used for various public services, infrastructure building and other social welfare services
GST Registration Process
A business needs to make an application for GST registration as per the GST Act. In fact, it is the acquisition of a GST number under GST that is specifically unique to the business and is normally referred to as GSTIN. In fact, this registration can be done directly online via the GST portal. A submission of application for GST can be done quite easily online and there is also provision to make the submission of documents.
Below is a very simplified outline of the registration process under GST:
Click on 'Register Now' at the GST portal.
You have to fill your application form online with all your business details, PAN, Aadhaar, and your bank account.
You have to upload all the proof of registration, proof of the address, and identification.
You can even check its status and also file an application further procedure gets your application verification wherein you get your GSTIN.
StartupFlora Can Help
GST is a very elaborate process and quite confusing to any new firm. StartupFlora, through its professionals, accompanies all procedures under GST registration. Our experts shall guide you to fill in the GST application online by helping you comply with the rules and regulations regarding GST.
Some other types of services being provided by us to support growth of startups are:
Registration and compliance of companies
Seed funding and investor network
Tax exemption policy
Support in marketing and branding
After getting aware of GST and its benefit, the Indian economy is going to boom because it is a boon for business. Contact StartupFlora today to know how we can help you in dealing with GST and making success in business.
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