The GST tax was designed to replace all previous indirect taxes with a single, comprehensive tax. GST combined all indirect taxes, including the central excise tax, service tax, VAT, and entertainment tax. This significant development has made it easier for Indian citizens to file their taxes without the difficulties they previously encountered. GST has had a huge impact on the Indian economy in a variety of ways. The country's taxes system has been streamlined thanks to GST. Because GST is a single tax, calculating taxes at various points along the supply chain has become more straightforward. Both customers and producers gain a clear understanding of the amount of tax they will be paid and the justification for it. Additionally, dealing with tax officials and authorities can be avoided. The entire tax component of the product cost, according to the Indian retail industry, is roughly 30%. Taxes have decreased as a result of GST's influence. As a result, the tax burden on the end user is reduced. Tax cuts have boosted retail and other businesses' production and growth. GST's Composition Scheme now allows small and medium businesses to register. They pay taxes based on their annual revenue through this approach. As a result, companies with an annual turnover of Rs. 1.5 crores are only required to pay 1% GST. In addition, businesses with a turnover of more than Rs. 50 lakh must pay 6% GST. Tax obstacles such as toll plazas and checkpoints can now be avoided. Previously, this caused issues, such as harm to unpreserved food during transportation. As a result, producers had to maintain buffer stock on hand to compensate for the losses. Their profit was restricted by the overhead expenditures of storage and warehousing. These issues have been mitigated by a single taxing system. They may now readily move their wares throughout India. As a result, their operations across India have improved. The introduction of GST has aided in the consolidation of state and federal taxes. The cascading effect of various taxes has been reduced as a result of this. As a result, the tax burden on businesses and consumers has decreased. Not only that, but the number of taxpayers has increased, resulting in a large increase in tax income. The total tax system is now simpler to manage. Furthermore, small and medium-sized businesses can expand their operations. It is predicted that the GST will assist more Indian businesses in entering international markets.

Sahreen Younis Ahanger

50 resources

7

2

0

Like