{"id":3695,"date":"2020-03-01T09:29:32","date_gmt":"2020-03-01T09:29:32","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3695"},"modified":"2020-03-01T09:29:32","modified_gmt":"2020-03-01T09:29:32","slug":"advantages-of-gst-in-india","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/","title":{"rendered":"ADVANTAGES OF GST IN INDIA"},"content":{"rendered":"\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"advantages-of-gst-in-india\"><strong>ADVANTAGES OF GST IN INDIA<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-64-1.jpg\" alt=\"\" class=\"wp-image-5176\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<p>The <a aria-label=\"Goods and Services Tax  (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/features-of-gst\/\" target=\"_blank\" rel=\"noreferrer noopener\">Goods and Services Tax <\/a>was introduced with the primary objective of boosting India\u2019s economy. Besides simplifying the indirect taxation system, GST has helped in clearing away the hidden costs on commodities\/services, thus benefitting the end users. Some major advantages of GST in India are as follows:<\/p>\n\n\n\n<p><strong>EASIER CLASSIFICATION<\/strong><\/p>\n\n\n\n<p>The GST system has facilitated in\ncreating a transparent system with easier classification of products &amp;\nservices. However, the taxation under GST is based upon the concept of supply\nrather than on this classification. That is, if a transaction does not fall\nunder the realm of supply, it will not be taxable under GST. Moreover, litigation,\narising from cases whether a particular item or activity is goods or service,\nis not likely to occur.<\/p>\n\n\n\n<p><strong>BETTER COMPLIANCES<\/strong><\/p>\n\n\n\n<p>The implementation of the GST system has paved way for simpler procedures and compliances as well as aided in easy monitoring and tracking of defaults or non-compliances. Furthermore, there had been multiple legal compliances under different legislatures. But now, taxpayers have got things easier as legal norms only under one statue need to be adhered to. GST is supported by the Goods and Service Tax Network (GSTN), a fully integrated tax platform, to help manage all aspects of GST.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-55-1.png\" alt=\"\" class=\"wp-image-5177\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<p><strong>BENEFITS FOR SME&#8217;S AND START-UPS<\/strong><\/p>\n\n\n\n<p>SMEs and start-ups in India have\na host of benefits awaiting them under the GST system which includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Ease\nof starting business by lower compliances. Companies that have business in\ndifferent states &amp; territories were earlier required to comply with\nmultiple laws. However, the centralised registration under GST has eased the\nprocess of setting up new businesses while also reducing the costs.<\/li><li>Minimised\ntax burden on new businesses. Earlier, it was mandatory for companies with\nturnover more than Rs 5 lakhs to register themselves under VAT. However, the\nlimit under GST has now been extended to Rs 20 lakhs. This has provided relief\nto over 60 percent of the SMEs.<\/li><li>Efficient\nlogistics leading to efficiency in delivery &amp; cost savings. The entry tax\nfor goods manufactured and sold in any part of India has been done away with\nunder GST. Thus, it has paved way for smother transportation of goods by\nminimising waiting time on check posts. A direct result of this would be\nsignificant savings on transportation costs.<\/li><li>Uniformity\nin the taxation process. Through a simple online mechanism, small businesses\nfind it extremely easy to file their tax returns every quarter.<\/li><\/ul>\n\n\n\n<p><strong>PRODUCT COMPETITIVENESS <\/strong><\/p>\n\n\n\n<p>Becoming at par with the\ninternational tax standards, the introduction of the GST system has ensured\nreduction in overall costs of production, thereby making Indian products much\nmore competitive in the global market. Furthermore, inflation is likely to\nremain under control under the GST regime.<\/p>\n\n\n\n<p><strong>BENEFIT TO THE GOVERNMENT<\/strong><\/p>\n\n\n\n<p>The GST system has ensured better revenue generation for the government as the cost of tax collection has reduced. And, the government is seeing an increase in taxpayer registration. Also, with the systematic rules under GST, malpractices like corruption and sales without receipts are kept under check.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-65-1.jpg\" alt=\"\" class=\"wp-image-5178\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<p><strong>MITIGATION OF\nCASCADING EFFECT <\/strong><br \/>\nUnder the GST administration, the final tax would be paid by the consumer for\nthe goods and services purchased. However, there would be an input tax credit\nstructure in place to ensure that there is no slumping of taxes. GST is levied\nonly on the value of the good or service.<\/p>\n\n\n\n<p><strong>ABOLITION OF\nMULTIPLE LAYERS OF TAXATION<\/strong><br \/>\nOne of the advantages of GST is that it integrated different tax lines such as\nCentral Excise, Service Tax, Sales Tax, Luxury Tax, Special Additional Duty of\nCustoms, etc. into one consolidated tax. It prevents multiple tax layers\nimposed on goods and services.<\/p>\n\n\n\n<p><strong>RESOURCEFUL ADMINISTRATION BY GOVERNMENT<\/strong><br \/> Previously, the management of indirect taxes was a complicated task for the Government. However, under the GST establishment, the integrated tax rate, simple input of tax credit mechanism and a merged GST Network, where information is available, and administration of resources are well-organised and straightforward for the Government.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/images-8-1.png\" alt=\"\" class=\"wp-image-5179\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<p><strong>ENHANCED\nPRODUCTIVITY OF LOGISTICS<\/strong><\/p>\n\n\n\n<p>The restriction on inter\nstatement movement of goods has reduced. Earlier logistic companies had to\nmaintain multiple warehouses across the country to avoid state entry taxed on\ninterstate movements.<\/p>\n\n\n\n<p><strong>CREATION OF A\nCOMMON NATIONAL MARKET<\/strong><\/p>\n\n\n\n<p>GST gave a boost to India\u2019s tax\nto Gross Domestic Product ratio that aids in promoting economic efficiency and\nsustainable long \u2013 term growth. It led to a uniform tax law among different\nsectors concerning indirect taxes. It facilitates in eliminating economic\ndistortion and forms a common national market.<\/p>\n\n\n\n<p><strong>EASE OF DOING\nBUSINESS<\/strong><\/p>\n\n\n\n<p>With the implementation of GST, the\ndifficulties in indirect tax compliance have been reduced. Earlier companies\nfaced significant problems concerning registration of VAT, excise customs,\ndealing with tax authorities, etc. The benefits of GST has aided companies to\ncarry out their business with ease.<\/p>\n\n\n\n<p><strong>REGULATION OF\nTHE UNORGANIZED SECTOR UNDER GST<\/strong><\/p>\n\n\n\n<p>It has created provisions to bring unregulated and unorganised sectors such as the textile and construction industries to name a few under regulation with continuous accountability.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-64-1-2.jpg\" alt=\"\" class=\"wp-image-5180\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<p><strong>REDUCTION OF\nLITIGATION<\/strong><\/p>\n\n\n\n<p>GST aids in reducing litigation\nas it establishes clarity towards the jurisdiction of taxation between the\nCentral and State Governments.GST provides a smooth assessment of tax.<\/p>\n\n\n\n<p><strong>TACKLING\nCORRUPTION AND TAX LEAKAGES<\/strong><\/p>\n\n\n\n<p>With the GST online network portal, the taxpayer can directly register, file returns and make payments of the taxes without having to interact with tax authorities. A mechanism has been devised to match the invoices of the supplier and buyer. This will not only keep a check on tax frauds and evasion but also bring in more businesses into the formal economy.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/images-8-1-2.png\" alt=\"\" class=\"wp-image-5181\"\/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/features-of-gst\/\">GST and its features<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-gst\/\">History of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\">Advantages of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\">Disadvantages of GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/constitutional-aspect-of-gst\/\">Constitutional aspects of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liability-of-tax-payer\/\">Liability of tax payer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-gst\/\">Objectives of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\">IGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cgst\/\">CGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-council\/\">GST Council<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/utgst-full-form\/\">UTGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/sgst\/\">SGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/levy-and-collection-of-gst\/\">Levy and collection of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composition-levy\/\">Composition Levy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-gst-registration\/\">Online GST Registration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exemptions-under-gst\/\">Exemptions under GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/reverse-charge-in-gst\/\">Reverse Charge in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\">Taxable supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\">Time of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/value-of-supply\/\">Value of supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/place-of-supply\/\">Place of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-state-supply\/\">Inter-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/intra-state-supply\/\">Intra-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-composite-supply\/\">Composite supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/mixed-supply\/\">Mixed supply&nbsp;<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composite-and-mixed-supply\/\">Composite and mixed supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-payment-of-gst\/\">Online payment of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\">How to Claim TCS in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tds-in-gst\/\">How to claim TDS in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/input-tax-credit-under-gst\/\">Input tax credit under GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/tax-invoice-under-gst\/\">Tax Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/debit-note\/\">Debit Note in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/credit-note\/\">Credit Note in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revised-invoice-in-gst\/\">Revised Invoice in GST<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Supplementary Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/e-way-bill-in-gst\/\">E-Way bill in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/gst-returns\/\">GST Returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/goods-and-service-tax-network\/\">GSTN (Goods and Service Tax Network)<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-suvidha-provider\/\">GST Suvidha Provider<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-portal\/\">GST Portal<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"ADVANTAGES OF GST IN INDIA\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>ADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>ADVANTAGES OF GST IN INDIA The Goods and Services Tax was introduced with the primary objective of boosting India\u2019s economy. Besides simplifying the indirect taxation system, GST has helped in clearing away the hidden costs on commodities\/services, thus benefitting the end users. Some major advantages of GST in India are as follows: EASIER CLASSIFICATION The&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;ADVANTAGES OF GST IN INDIA&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3697,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-3695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goods-and-service-tax"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3695"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3695"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3697"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}