“Treat taxes like a responsibility, not as a punishment. “
Taxes are always treated as a burden, especially among business class people. GST is one of the biggest concerns these days among people. They are worried about if GST will be more costly for them and will it hamper their business. This guide will help you to understand GST completely.
What is GST?
It is Goods and Service Tax which is a tax imposed when any consumer buy a good or service. It is a combination of taxes levied by central and state governments. This tax is an important step for the removal of indirect taxation in India and will help in vanishing double taxation. It provides hassle-free movement of goods from one state to another without spending hours on the state border for tax payment. But on the same side, there will be somewhat increase in the tax rate.
Some of the features of GST
1. Removal taxes like VAT, CST, Central Excise Duty, Service Tax etc.
2. Now taxes on different goods and service will not vary from state to state. It be will be same for PAN India.
3. Under Integrated GST: The state in which end consumer stays, that state will get the tax benefit rather than manufacturing state.
4. C-forms will be eliminated and for interstate transfer, there will be electronic way bill so that the transfer of goods can be monitored by the central government.
5. New companies and startups will be benefited as it’s a simple procedure of taxation and ease in starting a business.
6. Under GST, no firms will be benefited in terms of taxes even if they divide themselves into a certain number of smaller firms.
Cloth Merchants are worried about GST and to answer their queries, here is the brief discussion about GST and textile industries:
GST impact on Textile Industry
Textile market is one of the biggest markets and plays a vital role in GDP growth via employment, export, etc. This industry bestows more than 11% in total export and has both organized and unorganized sectors. With the implementation of GST, this industry is going to have a huge impact.
The tax related complexities and distortions of small businesses are going to be sorted by GST. Now the workers of both central and state will be treated uniformly in terms of taxes. GST is going to remove the blockage of input tax chain, which is broken at the present time. There will be fewer disputes because of single rates and of course GST is going to increase the GDP growth.