GST India
Difference Between GST And The Previous Tax System in India

The GST Bill in India had been in the pipeline for quite long. However, it got passed in both the houses of the parliament last year. It got implemented on July 1, 2017.

It has been one of the biggest changes in the tax structure in India and has proved to be beneficial for individuals as well as businesses. For business, it has reduced the burden of multiple return filings and has also eliminated the geographical barriers for trading companies.

Why was GST preferred over other tax structures

GST is based on a dual concept tax system. This system lets both the State and the Centre governments manage, collect and share the tax based on how and where the transaction is done. This is way different than the previous tax regime and it has made the lives of people and small and medium-sized business easier.  Let’s have a closer look at what GST has brought new as compared to the previous tax regime.

  • The previous tax regime in India had different laws for different taxes. The GST tax structure has amalgamated the various taxes and hence today there is just one law.

 

  • The previous tax regime had different rates while the GST system has a single CGST rate and a constant rate of SCST across all states of India.

 

  • The previous tax regime levied heavy taxes on the taxpayer hence putting a lot of burden on him/her. With the introduction of GST, this tax burden has got reduced as all the taxes have been integrated.

 

  • In the previous tax system, some taxes used to be included in the cost because of the presence of cascading effect. With the introduction of GST, the burden of cost has been reduced as the cascading effect has been eliminated.

 

  • In the previous tax regime, the State and the Centre didn’t work together on taxation subject matter. However, in GST both the authorities have been commended the power to make law on GST as the constitution allows it to do so.

 

  • In the previous tax scenario, the tax structure was complex. There were several laws that were to be followed. In GST, the tax structure is very simplified as it is governed by only a single law.

 

The implementation of GST has been one of the best things to have happened to the Indian tax system. This has not only simplified the complex taxation system in India but has also become the reason for the increase in employment in the country. A lot of new jobs and a lot of new tools have been created for the smooth functioning of GST. Among these useful tools and resources is this website www.gstinbharat.com. The implementation of GST has led to increased productivity and progress. Websites like www.gstinbharat.com have helped in speeding up the process.

We hope you found this post useful and informative. If you have any queries or suggestions related to this post, please drop your comments in the comment section below.  We would be glad to help you out. To show your support, share this post with your friends on Social media and elsewhere.

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Benefits Of SIP in Mutual Funds
Benefits Of SIP in Mutual Funds

One of the most popular means of investment today is the Systematic Investment Plan or SIP. SIP lets the investor invest in small and fixed amount of money into a mutual fund scheme. SIP investment lets the investor invest money at regular intervals of time such as monthly, quarterly, yearly or for a continuous period of time.

The investors’ financial goals can be classified as long-term goals and short-term goals. Short-term goals may include planning a holiday, buying luxury goods, etc. Long-term goals may include buying your own home, buying bikes under 1 lakh in India, supporting children’s future education, planning retirement funds, etc.

Systematic Investment Plan is a wise financial planning instrument which helps you generate wealth over a period of time. You can start an SIP for as low as Rs. 500 per month and embark on your journey of SIP investment. The benefits from the power of compounding are huge and this is one of the reasons why you should consider investing in SIP mutual funds.

Here are some of the major benefits of investing in mutual fund SIP:

1. Systematic investing:

SIPs allow you to invest money into various mutual funds at frequent time intervals such as monthly, quarterly or yearly. The regular investments in mutual funds mean that you do not have to consistently track the market.

2. Good investment discipline:

A good investment discipline is created with regular investing. This ultimately helps you in achieving your financial goals at the end of your investment period.

3.The advantage of compounding

The key to building wealth is to start investing early and to keep investing regularly. A small amount of money invested regularly can grow to a large sum.

The best way to build wealth is to start investing early and invest regularly. Through the power of compounding, the small amount of money invested over a longer period of time can grow to a huge sum by the end of the investment period.

4. Investment in small amounts

One of the best features of SIPs is that it allows you start investing for amounts as low as Rs.500 or Rs.1000 per month.

Tips for Effective Wealth Creation:

1. Use SIP Calculator for better investment

One of the best ways to start SIPs is to use an SIP Calculator. This will not only provide you with the best SIP plan comparisons but will also help you track your SIP investments regularly. Many investors use SIP Calculator for better investment and it is highly recommended that you too start using it if you haven’t already.

2. Use long-term investment plans

SIPs work best for long-term investments. Long-term investors get more benefits than investors who go for short-term investments. If you are looking to garner enough wealth for your long-term goals like buying bikes under 1 lakh in India, you should definitely go with a long-term investment plan.

We hope you found this post useful and informative. If you have any queries or suggestions related to this post, please drop your comments in the comment section below.  We would be glad to help you out. To show your support, share this post with your friends on Social media and elsewhere.

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