GST stands for Goods and Service Tax. GST abridges indirect taxes in India by incorporating multiple taxes and Cesses charged by Centre and State Government of India into one single tax (GST) on goods and services across India. Now except GST, no tax other will be charged on manufacture, sale, entry or purchase of the goods.
GST is all about simplifying the complicated network of the indirect tax and compliance requirements by streamlining the complicated structure. The tax system is now simple and easy to figure out for manufacturers, traders, service providers and the citizens of India.
For the buyers with a totally transparent transaction, GST provides full awareness of the amount of tax being charged for the goods or services being purchased as the product or service value and tax of the supply is shown in the tax invoice separately. And for the taxpayer i.e. manufacturers, traders, service providers etc. GST is more like self-assessment tax.
Before GST, the interstate movement of goods across the states used to face enormous congestion. In order to comply with the VAT laws of the entry state, vehicles carrying goods had to wait long hours at the states border check post. GST removed the obstacle like paperwork and other necessary procedures ensuring the smooth, continuous and much faster transport of goods across the states.
With GST most of the compliance processes are done online starting with taxpayer’s registration, return submission, tax payment, and refund claim. Taxpayer won’t have to any government authority to deal with tax compliance issues. GST ensure a hassle-free experience for the taxpayer when it comes to refunds.
GST provides the following benefits to citizens by simplifying the complex Indian tax system:
- Instead of having multiple taxes now only one tax is in place.
- Unified movement of goods through state borders.
- Making registration, the filing of returns, refunds online.
- Fixed timelines for every taxpayer request.
- Transparent and prompt decision making due to the nominal human interface.
- For delayed refunds interest will be paid.