July 06, 2017
India all set with the long awaited Goods and Services Tax (GST) rolls out. On Saturday even the business lobby complains that they are not prepared for this big change in the tax formation.
A nationwide goods and services tax has implemented and came into effect from Saturday and yet it is facing criticism for its complex design and early implantation, but the government of India is considering its implementation for boosting government revenues and India’s global credit profile.
Until Now, the small business operations have been kept running under the radar of Indian tax officials. But Now from July 2017, the Tax Evasion will be over.
Now For all firms or companies it's required to upload their invoices to the Goods and Services Tax Network (GSTN) portal every month that should should be matched with those of their suppliers and vendor's. Just because the need of GST tax numbers to claim the cost input, many firms and companies are not purchasing any goods from unregistered businesses and hence the economy industry of India may decline gradually.
According to the current situations any company, service provider or firm has to registered with the new “TAX” system to run its business smoothly in India.
GST is a combined tax of multiple stages of production and delivery of goods and services all across the India. The goods and services tax is a single tax form of all state and local tax, entertainment tax, excise duty, surcharges, octroi and others. By GST the government is able to receive full tax credit from inputs and capital goods.
Now it's easy to start a business in India because removal of all state wise taxes, VAT registration that cause the complications in spreading businesses and increase the procedure fee. After GST all kinds of other taxes have been removed and it enables a centralised registration that will set an easy platform for a startup business.
The GST is rolled out and the impact of GST will be favourable in many ways. Some of the major Pros & Cons for small and medium-sized enterprises and startups -
1 Easy To Start Business
2. Release From Tax Burden
3. Tax harmonization
4. Simplified transportation of goods and services within the country
1. It could be more costly to businesses and consumers along the supply chain
2. Additional opportunities for individuals
However, In these conditions the states may notice big revenue fall and may apply the other services charges to business and consumers both.
In synopsis, the new tax – GST will effect the overall Indian economy and will have to Investigate properly to reach at completely accepted conclusion.