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Indian Market is one of the biggest and most dominating market in the world not only in offline but also in online. Global entrepreneurs or e-retailers are seeking to the Indian market for expand their business.
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Indian Market is one of the biggest and most dominating market in the world not only in offline but also in online. Global entrepreneurs or e-retailers are seeking to the Indian market for expand their business. According to the latest report, Indian Online Market is expected to touch $1 trillion in 2020. And, today we are discussing about GST impact in Indian Marketplace but firstly, we should have to know “What exactly is GST?” or “Whom GST replace?”
Goods and Services Tax(GST) GST simply Goods and Service Tax, which implemented July 1, 2017 midnight in India by Former President Pranab Mukherjee and current Prime Minister Narendra Modi to get more user friendly of Indian Market and removed the lots of VAT or Service Tax in to GST with “One Nation, One Tax” concept. Central Goods and Service Tax also known as “CGST”, which is levied by the Central Government and collected tax revenue by CGST on all goods and services. State Goods and Service Tax also known as “SGST”, which is levied by the State Government and collected tax revenue only by SGST. Integrated Goods and Services Tax also known as “IGST”, which is implemented by Central Government for inter-state supply of goods and services and collected tax revenue is divided into both Central and State Government in their fixed rates.
GST REDUCED TAXES Before implemented GST, if a trader buys goods and services from manufacturer then he/she have to paid VAT and Excise duty and then he/she sells goods and services to the consumers then they charged only VAT from consumers and added excise duty to the cost, but now GST reduced lots of the taxes and it gives benefit. • Easy to maintain the Accounts or regular Book Keeping After implemented GST reduced lots of the burden and easy to maintain daily basis accounts or regular book keeping for large scale retailer and small scale retailer as well. Before implemented GST, it is quite difficult to calculate different types of indirect taxes but now, GST reduced many taxes in one form.
Growth And Better Opportunities The door is open for the growth for you and for your business as well. After enable GST, the opportunities is available for you, if you want to spread your business activities in different states as well then GST is for you. Before GST, if you want to target the audience in different states or Intra-State Trade, then you have to faced Central Sales Tax (CST) + some indirect taxes + lots of the documentation and sometimes legal authorities seized your consignments while transferred to other state due to some lack of documents. But now, GST replaced CST or Indirect Tax in the form of IGST (already mention above). You don’t need to pay extra taxes while transfer the goods in different states of India.
Faster Delivery Through GST, it is easier to deliver goods with more consistency for the online retailers and offline retailers as well at the right time because before GST, sometimes tax department forfeited the goods at the time of inter-state. This results delayed deliveries and sometimes consumers denied to accept the goods if the product not delivered at the right time. That’s why, many online and offline retailers had to suffer losses.
REGISTRATION SHOULD BE REQUIRED IN EVERY STATE Under the GST Law, it is mandatory to get registered in every state where you are selling or delivering the goods or products. If you are supplying any goods or products in Mumbai and Delhi, then you have to get the separate GSTIN number of both the states. • DUAL CONTROL TAX GST is made up for relieving the different types of taxes and reduced the lots of taxes burden for selling any goods or products but in reality, GST is a dual tax system is divided into 2 categories state and central government both collect the tax separately.
RETURNS TO BE FILED ON MONTHLY BASIS After implemented GST, there is 36 returns in a year and you also have to close your books on a monthly basis. This activity spent more time consuming of a vendor and generates more work load. Instead, of other productive work which helps to generate earning, make strategy to reach the customer. And, If you missed to file any return, you have pay Rs.100 as a penalty. • NOT USER-FRIENDLY FOR EVERYONE Many Retailers and consumers are not known about the GST. They still have a questions regarding GST tax slab rate. They didn’t get any proper guidance. Many small vendors are confused that how to manage accounts and close every month? How to file returns under GST?
CONCLUSION GST is better option rather than Indirect Taxes and CST (at the time inter-state) but it hurts the people’s business. That’s why former governor RaghuRamRajan said an interview to ET Now, GST will impact in a positive way in the long term results. He also advised to Finance Minister ArunJaitley to not to cut rates. To make daily basis accounts or manage book keeping, small vendors or e-retailers have to be ready yourself for file or return GST. You have to take guidance or consult any Chartered Accountant (CA) or any Service providers who have a knowledge regarding GST. And, make your business GST ready.
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