The Goods & Services Tax was one of the most significant changes brought in the commercial taxation system of India. The ruling Government left no stone unturned to get merchants across the country on board with the upcoming modifications.
In July 2017, the Goods & Services Tax became a reality after substantial delays in the parliamentary procedure required in implementing it. Almost two years have passed since the arrival of the Goods & Services Tax, and finally, people across the country can see its advantages.
GST Filing has become extremely smooth
Before the Goods & Services Tax came in the picture, a trader needed to apply for different licenses before the central as well as state governments. Now, they can opt for online GST registration to pay the Goods & Services Tax. Getting the GSTIN is not at all a tough ask. The processes of filing returns after getting the Goods & Services Tax identification number is also a straightforward task.
Maintenance is not cumbersome anymore
In the days of yore, offline tax payments were the norm. In the present times, you can pay your GST online, and your records will always be available on the portal. You do not have to carry the burden of papers and documents to maintain your taxation records. Everything is available online, and you can calculate all the necessary data with relative ease.
Historical changes in the GST landscape
Before the GST era, merchants had to pay many commercial taxes to different authorities. Some of the tax collection bodies were present at the state level, while others were central government bodies. Tax evasion and avoidance were prevalent, and a large number of traders across the country did it quickly.
The Goods & Services Tax has replaced central excise duty, luxury tax, and service tax, among others. Once a merchant gets a GSTIN, they are mandated to pay all the fees as stated above. Hence, the non-payment of these levies has become extremely tough. The bright slabs of taxation have also helped in minimizing all confusion regarding rates.
Trade has become transparent
The creation of the GST council has facilitated the trade of goods across the state borders. Earlier, a large number of taxes were collected by the State governments and the Central Government by their separate authorities. So, the trade of products from one state to another was a complicated process for merchants. Now, they can sell their goods by paying all the necessary taxes in one place.
No more ‘taxes on taxes’
Before the arrival of the Goods & Services Tax, a merchant often had to pay levies on a tax that they have already paid. GST has made sure that something of this nature does not happen anymore. All the necessary fees for the facilitation of trade are paid at one taxation checkpoint. The overall system has become free of hassles. Online GST registration is a fast and straightforward process for all merchants. It is beneficial not only for the merchants but also for the tax collection authorities all over the country. It is a ‘win-win’ situation for all parties.