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5 Things you Should Know about GST

finance

For all the businesses in India, the Goods and Services Tax is a blessing. As per nature the tax, the Indian tax system is very complex as there is a wide range of direct and indirect tax deduction for different products and services.

For any small business, it is very important to understand the structure of the tax otherwise it will be difficult for them to implement. Due to the volatile nature of the different components of the tax system, there will be more changes every now and then. moreover, it has made the traditional tax process more intricate.

For a start-up company that has to establish the business from scratch, the process of tax filing, payment procedure, and tax credit calculation, and every other thing of the structure seem quite difficult.

In case, they don’t take the help of the Goods and Services Tax Consultant in Delhi, there is a high scope of making mistakes resulting in a heavy penalty from the government. It may bring legal implications and hampering the image of the business eventually.

The complex business tax process has been simplified by Goods and Services Tax. Small businesses can have a better understanding of the tax structure.

To know more about it, keep reading the article.

1. The tax burden:

After the implication of GST, the Goods and Services Tax Consultant in Delhi got the query of whether the tax burden would go down. It can be said that the GST has a definite impact on the cascading tax. There will be no tax in every stage for the produced goods until it reaches the end consumer. Eventually, it has brought down the tax burden.

2. The Compliance Burden:

The GST tax system was designed to bring down the burden of compliance on small businesses. For a smooth transaction, you need to follow less stringent compliance now.

3. Less Tedious:

Before the introduction of GST, the traditional taxation process required to file VAT, service tax and other returns in separate ways as the input mechanism of each of the tax system was different. Now for GST, you need to just insert the details of sales and purchases and the GSTN automatically matches the invoice for credit and prepares the return as per it.

4. GST Rate Slab:

Right now, the Income Tax Department of India has implemented four slabs for the GST rate that ranges from 0% to 28%. Essentials products and grains like rice and wheat are exempted from the tax. Mass consumption goods like oil and tea have a tax rate of 5%. The next category has a standard 12-18% tax slab. Finally, all the luxury goods and services like precious metals come under the slab of 28% GST.

5. GST Registration:

To file the return, you may need the help of the Goods and Services Tax Consultant in Delhi who can guide you in online registration for GST. After the registration, the tax will be calculated based on the liability through the sales bill. Then you can pay the amount online.

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Written by Vishal Shekar

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