The moment Goods And Services Tax was introduced back in 2017, it was met with mixed reaction from the nation. GST made some huge changes in the form of removal of VAT, excise, and service tax by absorbing them all in it and bringing down the overall cost of goods and services of a product. We all know nothing great has been ever achieved without a few challenges here and there and the same happened with GST reform as well.
Nonetheless, gradually GST has proven its mettle and convinced all of us that it is doing way more good than causing incontinence. In this article, we will be discussing the various benefits GST offers that can end up being in the favour of your business.
Convenience With Filing Returns
Earlier businesses, especially businesses that belonged to the MSME sector, used to face a lot of difficulty in tracking the number of taxes there were back such as excise duty, VAT, purchase tax, luxury tax, etc. Things were so complicated that a normal businessman without great knowledge in this domain would end struggling and hire an expert to crunch those numbers. Since GST has been introduced, filing returns has become easier than ever as businesses now have to take care of just 1 tax that has subsumed all other taxes.
Shipping Made Super Easy
With so many tax checks and different kinds of taxes, while shipping goods from one place to another, the process was extremely inefficient as it would increase the cost of transportation in terms of fuel and time. The process was made much easier when the government removed the border checkpoints from the process when GST was introduced. Now with GST, the shipping has not only been made efficient but has been made less time consuming than ever.
Canopy Of Technology
There is a reason why technology is said to your best friend these days. With the help and backing of technology, many businesses are now getting to enjoy a much more convenient way to deal with their taxes. Yes, we are talking about the GST online portal. This online portal has made the process extremely easy where you are just required to get GSTIN to pay your taxes every month. Also, you need not worry about keeping all the paperwork safe, because it is automatically getting saved for you in your personal account. Amazing, isn’t it?
Put An End On Cascading Tax Effect
The Biggest relief and joy GST has brought into the lives of business owners and consumers is the elimination of the cascading Tax Effect. Cascading tax effect is the concept where good is taxed on each and every step of its creation which sums up to be a huge amount of burden, which the consumer bears in the end. GST put an end to this by introducing Input Tax Credit. ITC allows you to subtract the GST you paid to your vendors from the amount you owe to the government.
Sure, the GST might take you a bit to get familiar with, as it involves a great deal of technology and digitization, you will only thank the government later to have introduced this in the first place.