GST – Goods and Service Tax, as we all understand, is applicable on purchase of a good or service. The tax application has replaced all other indirect taxes. Numerous taxes levied by Central and State Government are now replaced by a single law. The GST is applicable to manufacturer, seller as well as consumer. GST consultants in Delhi are aware of changes and implication and are ready to help you with doubts.
Understanding the benefits of GST
Transfer of tax liability
Indian tax system is one of the most complicated one compared to other countries. It has left quite a cascading effect. Since the tax liability was given to every next person in transaction cycle, it led to a significant increase in price of a good or service. GST has come as a solution to the same, and the burden of tax is now on the consumer. The industry can hence have a better control on funds and maintain a better cash flow. The elimination of transfer of tax liability is the biggest pro of GST bill.
Better control on tax evasion
Taxes can be complicated. The input tax, as per the law, is creditable to service provider only if the same is mentioned in their return. This ensures that the supplier is honest at the time of filing tax returns.
In order to utilise the benefits of GST, one needs to share all information in their paperwork. A retailer registered cannot have hidden costs. To become a registered retailer and avail these benefits, you can consult a top ca in West Delhi.
Better support to small business
Reduction in tax liability has made way for small companies to join the business league. There are many schemes under the GST bill that are fruitful for small companies.
Better threshold with GST
With VAT system, any company with a turnover of more than 5 Lakh had to pay due taxes. The threshold is now 20 Lakh, making it easier for small businesses to operate.
Understanding the Cons of GST?
High cost of operations
One of the biggest disadvantage of GST is the high operational cost of business. This is due to excessive training required for employees to help them understand GST. You can however simplify this by the help of GST consultants in Delhi.
Need for GST consultant in Delhi for every invoice
GST has made it easy for small businesses to become independent and successful. But it also needs them to have GST implementation for every invoice. This compliance needs them to have a professional on board all the time.
Decrease in tax exemption
The tax exemption is now decreased from 1.5 crores to mere 20 lakhs. This is not a good news for many indigenous manufacturing companies.
GST returns have to be filed online
While this may not bother a lot many of us, it is still a drawback for many people. The earlier taxes were done manually. it was easy for small business owners, many of whom were not very tech savvy. The online system needs you to upload invoices, this might be difficult for many people. If you are facing the same issue, you can get in touch with a ca in Janakpuri to help you file returns.
While it is a good idea to weigh the pros and cons of GST, it is something you cannot escape. The GST law is not complicated, but sure needs a thorough understanding. If you are new in business or GST seems confusing to you, GST consultants in Delhi are just a call away.
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If you still have queries about the GST bill or its return filing, you can contact GST consultants. www.manishanilgupta.com are reputed advisors for GST return filing and registration.