What is GST and How It’s better than CST
Both the houses of Parliament have given allowance to pass the GST reform. This GST reform is also set to roll out in upcoming months mainly from 01 July 2017. So what exactly is GST? GST stands for Goods and Service Tax that would simplify the tax structure in our nation. This tax system will be advantageous for both companies as well as people. As far as industries are concerned, GST would be quite favourable as it could diminish the burden of various return filings and even eradicate the geographical obstacles for trading companies. GST’s incorporation with Tally ERP 9 would be a great value addition for commerce looking to systematize their return submissions as compared to manual.
Organizations Would Favour GST Over Present Tax Administration
Being a dual model tax system, it is essential to understand GST’s basics. This structure lets both the State as well as Centre governments to handle, collect and easily segment the tax grounded on how the deal is done. Without a doubt, ii is not at all similar to the present tax regime and once into execution GST SAP will make the life of people along with small and medium sized businesses a lot easier. Now, let us have a look at what GST brings in new when compared with the present tax regime.
• The current tax management has different laws for different taxes, however, in GST will have only a single act uniting all the various taxes.
• Present tax regime has several rates while GST has a single CGST rate and a continuous rate of SGST through all states.
• GST would not give an upsurge to CST, as it will be fully removed once IGST gets into the picture.
• The present tax command levies hefty taxes on the tax payer, therefore, setting a lot of tax load on people. The minute GST gets into effect; the tax burden is expected to be reduced as all the taxes will be combined.
• Some taxes get comprised in the price because of the existence of cascading effect. Nonetheless, in GST the load of the cost is lessened as the effect is removed from the mechanism by offering credit.
• The present scenario doesn’t permit both the State and Centre on a parallel subject matter in the current tax system. On the other hand, in GST both the establishments will be praised with the control to create law on GST as the constitution would let it do so.
Last of all
In the present scenario, the tax structure is relatively complex as there are numerous laws to be followed accompanied by their provisions. After GST, the tax structure will be tremendously simplified.