The Important Facts Related to GST that People Must Know

Indian Government has taken a new stand on the advancement of the Indian economy and that is known as goods and service tax or GST. This has brought about some severe changes in the tax system of the country as well.

 

The levels in the Tax Structure

Actually, there are two levels in the tax structure. One goes to the respective state government whereas the other one goes to the
central government. The state level one is known as SGST and the central one is known as CGST.

 

The percentage of the tax depends on the type of services. This system has demolished the taxation system at every level of the supply. Instead of that, it is paid only once and it goes to the two respective places and that is all.

 

Who comes under the GST scheme?

There are some specific criteria for the persons, who are entitled to pay GST:

1. As per the rules and regulations of GST, the annual turn over of the business must be equal or more than 20 lakhs a year.

2. There are certain unique numbers for each type of businesses in the market. The respective persons must enroll their names under the HSN code of the business.

3. The enrolled business owners must be filing the details of the sales and purchases every month. Thus, the respective ministry can have the records of the entire detailing of the business on the monthly basis.

4. All kinds of incomes other than only traditional businesses also come under this goods and service tax, like the e-commerce
service providers, self-employers, and the income of the non-resident Indians etc.

 

The benefits of GST

There is a certain amount of benefits of GST and that is why; it is given them so much importance in the country’s taxpayer’s
schemes. Those benefits are like the following ones-

1. This scheme is scientifically less complicated for the beginners and the small business owners. They can start their start-ups
without the complicated structure of the taxes at each level they meet in the deals.

2. As the final turn over of the business assigned 20 lakhs a year, many small business owners don’t come under this regulation.

On the other hand, the big companies come strictly under this regulation without any further complication. It facilitates the economy of the country from both sides.

3. It facilitates the actual manufacturers of the products, as the scheme aims at end-to-end taxation system.

4. Similarly, in this system, consumers are also benefited. They don’t have to pay multiple taxes for a single product.

5. The application of the scheme till the date has proved many national gains, though there are some complaints against it. Still, there is a future prospect also in its continuation.