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.
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