BENEFITS OF THE GOODS AND SERVICES TAX (GST)

  • 17 types of indirect taxes have been merged in to one tax i.e Goods And Service Tax.
  • Online Registration of dealer is done maximum within 3 days  under GST.
  • One nation one tax i.e. single rate is charged on same item in whole country. Previously there were different rates of tax in different states on same material.
  • Simplification of GST Return is also made. Currently GSTR-1 and GSTR-3B are to be submitted online on monthly basis.
  • There is no hurdle of checking on  check posts on borders. Therefore, the quick movement of goods is made. Because of it lot of time and cost is saved.
  • Previously, there was no input benefit of Central Sales Tax but now, Inter-state GST is eligible for input of tax credit.

CURRENT NEWS

  • Central Government is thinking to bring petrol and diesel under GST after consulting with States. Currently petrol and diesel are covered under VAT and all States have their own rate of VAT on petrol and diesel.
  • The central government has proposed to allow Input Tax Credit on certain genuine transactions. For example :-  Supply of foods and beverages to employees, health services, hiring of motor vehicles, outsourced creche provided to working momen employees under the Materininity Benefit Act. Earlier no Input Tax Credit was not allowed on these transactions.
  • According to new proposal, E-commerce companies are also to be liable for registration under GST law if their gross turnover less than Rs. Twenty Lakh in a financial year.

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