Sunday , August 20 2017

Struggling to make a Technology Choice for your Small/Mid-Size Business?
ToOLOwl is here to help!

Home / Business / Most Frequently Asked Questions to Resolve all your Doubts about GST: Part II

Most Frequently Asked Questions to Resolve all your Doubts about GST: Part II

Most-Frequently-Asked-Questions-to-Resolve-all-your-Doubts-about-GST-Part IIIn Part one of GST FAQ’s, we addressed some of the Goods and Service Tax related queries. However, one document could not accommodate all the answers.

So we created part II of GST FAQ’s to help the people deal with the Goods and Service Tax problems. Find an elaborate answer to all the GST issues below.

What are the benefits of Goods and Service Tax?

Implementation of Goods and Service Tax has overall benefits for government, businesses, and consumers as stated below.
Business and Industry

  • Easy compliance through the use of Information Technology making taxation an easy and transparent process.
  • Uniform tax rates across the country are easing business development.
  • Eliminating cascading through input tax credits will reduce hidden costs.
  • Promote competitiveness. One nation one fiscal policy will make business and trade industry competitive.
  • Encourage manufacturing and exports. The subsuming of significant taxes such as central and state taxes will give way for made in India and will increase Indian exports.

Government

  • Simplify administration. Multiple taxes have been replaced by Goods and Service Tax making it easy for both the state and the central government to scrutinize the taxation system.
  • Prevent tax evasion and fraud.
  • Generate high revenues which could be utilized for the development of the country.

Consumers

  • Remove indirect taxes benefitting the consumer with reduced tax rates. It will bring in transparency in taxation and will eliminate hidden costs.
  • The reduction in overall tax rates. Before GST the customer had to pay many taxes, but with the advent of Goods and Service Tax, a single tax will be levied which will reduce the tax burden.

The role of Information Technology in GST Implementation?

Both the state and the central government has collaboratively initiated the Goods and Service Tax Network (GSTN). It is a non-profit company which provides an IT infrastructure and services to the central and state government and tax payers. It is a common platform for government and consumers to ensure transparent and simple taxation process. An official Goods and Service Tax portal will simplify registration, filing returns, and payments. Furthermore, it will help the government to conduct audits, assessments, processing returns and much more. It will eliminate manual taxation system and promote automation in tax return averting human errors.

How will GST affect Imports?

Before the implementation of Goods and Service Tax Additional duty of Excise or CVD and the Special Additional Duty or SAD were levied on imports. However, GST subsumes all these taxes under GST. The central levies IGST on the imports which is then shared with the respective states which consume the imports. Nevertheless, basic customs duty will be imposed on all imports despite GST.

How will GST affect exports?

The inclusion of the central and state taxes in GST and ruling out median sales tax will reduce the cost of manufacturing goods and services. It will promote “make in India” and give a competitive advantage to Indian manufacturers in the foreign market. One nation one tax will help reduce compliance cost in the long run.

Which commodities are kept outside the purview of GST?

As per the Article 366 (12A) of the constitution, alcohol, and petroleum products are kept out of Goods and Service Tax. Alcoholic liquor available for human consumption and some petroleum products namely petroleum crude, motor spirit, high-speed diesel, natural gas, and aviation turbine fuel is temporarily not included in GST. Furthermore, electricity is also kept out of GST.

The Bottom Line

Hope the questions acknowledged above have resolved most of your GST related queries. If you have any more issues, please write to us, we will surely try to remove all your doubts. Till then stay updated with all the economic news of the nation.

About ToOLOwl

I am ToOLOwl. I have few friends in my nest; whenever someone requests a tool’s review or I pick a one out of my interest, someone in the nest does research on the tool, someone takes a tool’s walkthrough and some of them share their experiences and expert advice. Based on all; I give it a  stereoscopic vision and present important insights for you to go through and ease your selection process for tools. Wish you Happy reading, Easy choosing.

Owl Suggests

10-Web-Design-Tips-for-Small-Businesses-to-Rock-Their-Website!

10 Web Design Tips for Small Businesses to Rock Their Website!

A website is a basic requirement for any business in the current technological world. The …

Loading...