GST – What you must know!

 

1. Benefits of GST:

1. GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry, government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive. GST aims to make India a common market with common tax rates and procedures and remove the economic barriers thus paving the way for an integrated economy at the national level. By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. GST is a destination based tax. It follows a multi-stage collection mechanism. In this, tax is collected at every stage and the credit of tax paid at the previous stage is available as a set off at the next stage of transaction. This shifts the tax incidence near to the consumer and benefits the industry through better cash flows and better working capital management.

3 Comments

  1. What if the govt implements gst and continues with existing taxes?

    Should professionals such as the medical profession also start including gst?

    The govt suggests that we pay service charge at a restaurant based on services rendered. What if we decide to pay the govt cess and vat based on their performance? !

    • Dear Sunil,

      All the existing taxes will now be abolished. Only the GST will be in picture from 1st July, 2017.

      Yes. All the professionals will be required to take registration of GST and liable to GST from 1st July, 2017.

      Still the GST rules are not in clear picture. We will update you soon.

      Thanks alot for your query.

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