Goods and Services Tax (GST) is a single tax that was initiated after amalgamating 17 different types of taxes. GST has replaced all the existing taxes and formed one tax to be paid by every person. This indirect tax is beneficial in making India a common market right from the manufacturer to the consumer.

GST has numerous benefits when examined and analyzed accurately. The benefits of GST are not only associated with the government but are also helpful to manufacturers, consumers, businesses, and industries. In today’s article, we’ll be discussing the benefits that are related to the implementation of GST and what impact it has made to date. Some of the acknowledged advantages of GST are discussed below.

Top 8 benefits associated with GST!

Here are the listed benefits and conveniences of GST that are proven to be very helpful for the country:

Easy online filing of GST return

After the implementation of GST in 2017, it has become much easier to file online returns. Now, you are no longer required to stand in long queues in government offices. The whole simple process from registration to filing can be done online using the GST portal. Other online facilities like applying for refunds, responding to notices, and filling out other disputes are included in the online process.

Uniform taxation

As previously mentioned, GST has replaced 17 different previously existing taxes, compiled all those taxes together, and formed a single uniform tax. It has helped in doing business and made the nation tax-neutral. The famous quote “One Nation, One Tax” was derived from this feature.

Higher threshold limit

Before GST, every company was paying Value Added Tax for a turnover of more than INR 5 lakhs, and the amount varied from state to state. After the implementation of GST, the limit has been expanded to INR 20 lakhs, which excludes small traders and service providers. It has helped small business owners avoid hefty taxation procedures.

No tax more than once

The major benefit of this taxation system is that it has removed the various other layers of taxes. Now, it is not needed to pay tax on tax, GST has eliminated the problem of double taxation.

No corruption and tax evasion

Previously, many companies were involved in tax avoidance and high corruption when it comes to filing tax. One of the main intentions behind launching GST is to diminish corruption and increase the level of transparency between private companies, government, and people. The online process has helped greatly in improving transparency and making the Indian taxation system corruption-proof.

Less tax compliances

Earlier, before GST, there was VAT, service tax, sales tax, and many other taxes that had their own procedure, compliances, and documentation. However, the number of returns filed has come down to 11. Out of those 11, only 4 are required to be applied to a taxable person under GST.

Regulations for unorganized sectors

India has a variety of unorganized sectors such as textiles and construction that remain unregulated. GST commencement has allowed them to do their compliance and payments online. GST has ensured that these sectors must have accountability and regulation.

Ease of doing business

GST implementation has helped business owners do business with convenience, and government revenue finds lightness through the expansion of the tax base by increasing the compliance base. GST reform was expected to grow the country’s ranking as far as the “ease of doing business index” is concerned, and it is also helpful in the overall improvement of the GST regime in the country.

GST Benefits for the Common Man

  • A significant number of products and services are either exempted from tax or charged at 5% or less.
  • The structure of GST is simplified and easy to understand.
  • There is an option to receive refunds in case of overpayment.
  • Increased competition in businesses helps consumers make profitable choices and prevents monopoly.
  • Some daily-use items have become comparatively cheaper.

GST Benefits for the Country’s Economy

  • GST has reduced black money circulation that previously happened between traders and shopkeepers.
  • There is an increase in demand and goods consumption.
  • There is a common market for all goods and services.
  • The manufacturing sector has been boosted.
  • More jobs and new opportunities will be generated in the economy.

GST Benefits for Trade, Businesses, and Industries

  • There is a uniform procedure for filling, registration, tax payment, and refunds.
  • Ease of borrowing.
  • Easy entry into the market.
  • Elimination of cascading taxes.

Conclusion

GST was launched in India in 2017 and has numerous benefits. Till date, this revolutionary system has helped Indian people, businesses, and industries in a positive way. In the above article, we have done a detailed analysis of the benefits associated with Goods and Services Tax from different perspectives, including the common man, the economy, and corporate entities. This uniform system of taxation has made tax filing a simple and convenient process, unlike the previous system with multiple taxes.

FAQs

1. What are the different types of GST?

There are four different types of GST:

  • IGST
  • CGST
  • SGST
  • UTGST

2. What is the GST percentage?

GST in India has five different slabs: 0%, 5%, 12%, 18%, and 28%.

3. When was GST implemented in India?

GST was implemented in India on 1st July 2017 and came into power.