India is moving towards a progressive nation and will soon become a developed economy. After the demonetization, one of the biggest tax reforms in India is the Goods and Services Tax (GST). GST will boost up the Indian economy in coming years.
What is GST?
According to the GST bill, an ultimate single tax, GST has replaced all the complex taxes and indirect taxes. The government passed the Goods and Service Tax Act in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is applied to every value addition. GST is one indirect tax for the entire country.
How GST works?
Goods and Services Tax is an indirect tax reform which aims to remove taxation barriers between states. It creates a single market open to all to buy, sell, import, export within the country. GST has a class within it which provides economic freedom to Traders.
Before, the product has to go through different stages before reaching the end consumer. There were several taxes applicable throughout this process. However, this situation has changed in the GST, since it is a single tax levied on goods. GST can benefit the entire value chain and make it easier for both businesses and consumers.
Benefits of GST:
GST has removed the Cascading effect on the sale of goods and services.Impact on the cost of goods, since its regime eliminates the tax on tax, the cost of goods decreases.All activities like registration, return filing, application for refund and response to notice needs to be done online on the GST Portal hence reducing tax evasion.
GST portal and GST login:
GST portal will ensure the collection of data of existing taxpayers. Hence, this provides a strong foundation and advance preparations for smooth GST transition. At present, existing taxpayers can enroll themselves on GST portal through their Provisional ID. The ID is provided to them by the respective VAT department or service tax department. They can then update their business-related details on the GST portal. It is accessible and taxpayers can log in through user ID and password. The website is https://services.gst.gov.in/services/login