Exactly seven years ago, on July 1st, 2017, a single taxation regime was introduced in India – The Goods & Services Tax that we commonly call GST was levied for businesses with an annual turnover of Rs. 20 lakhs and above (Rs. 10 lakhs for Northeast and hill states). This 15-digit GST Identification Number has indeed brought in a lot of structure and efficiency in the system since earlier there were multiple indirect taxes applicable for state and central both such as VAT, service tax, excise duty, and more.
When you are a start-up or a young entrepreneur, this can be a bit overwhelming due to lack of awareness or clarity. This blog will breakdown the details in a simplified manner and help you understand the significance of GST, advantages, challenges, registration process, required documents, and its role in business growth.
In today's digital era, everyone prefers the ease of managing things from the comfort of their homes and offices, then how could tax compliance be left behind. This centralized platform helps businesses eliminate complexities that come with multiple tax registrations which facilitates ease of compliance and adherence to regulatory requirements, and the best part is that it's online!
Understanding new systems and processes can be a bit cumbersome initially. There could be some technical glitches or documentation errors leading to delays and rejections but that’s the case with a lot of platforms. Seeking assistance from support channels can mitigate this challenge and ensuring the submission of right documents will minimize this risk of errors.
What’s in it for the government? | What’s in it for the common man? |
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The unified tax system creates confidence in the international market, thereby increasing the opportunity for foreign investment, enabling a higher import & export market. | It eliminates the ‘tax on tax’ system as GST is a one-time tax, and the unorganized sector is far more regulated. Not only is the registration process simplified but the number of compliances are also fewer. |
GST has revolutionized the Indian tax system and given a boost to business efficiency. With integration of artificial intelligence and blockchain, it will further enhance the accuracy and deliver a superior customer experience.
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