As the central government has passed the GST bill (goods and services tax) in both rajyasabha and loksabha ; India is to be in a part of greater change , i.e. GST India.GST is an evolution that comes at exact time in the peripheral domain for India. It is a tax that is to be paid on supply of goods and services.
How will GST aid ?
Goods and services tax (GST), is an tax reform which focuses to seperate tax hurdles between states and creates a solo market. To make GST India happen the constituition first needs to modify different layers of government's entire powers to levy taxes. The GST will be divided in to two;
- central goods and services tax (CGST)
- state goods and services tax(sgst)
Benefits of GST :
- It makes the tax formation more simple and incline.
- As it is not applicable for goods and services which is exporting outside countryit is good for export oriented businesses.
- It can make more clarified and much better agreement.
- The whole market will be consolidated which may convert in to low business cost.
- It can ease moving of goods across states and can lower the settlement cost of business.
- In the prolonged rush, the lower tax obligation could render in to lower prices on goods for customers.
- Number of tax department will diminish which in turn may guide in to low deception.
- Business corporation which is under disorganized sector will comes under tax reign.
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