Impact of GST on Small Business
The GST (Goods and Service Tax) which has been declared by the government it will prove the primus tax reform in the India economy history. GST implementation impact is going to every business activity and will be number of changes in the existing tax regime. Some of things that should know to all about Goods and Service Tax.
What do you mean by GST?
GST stands for “Goods and Service Tax” is a single tax that will change all current indirect taxes assessable on goods and service in India. Both center and state include CGST and SGST. When goods are transferred between distinct states, IGST (Integrated Goods and Service Tax) will be applied to them.
Which taxes can be removed after GST Implementation
All existing indirect taxes will be replaced by GST such as electricity consumption tax, entertainment tax, tax collected by panchayat and municipality and more. Central includes like central excise duty, service tax, additional excise duty, additional customs duty and special additional customs duty. The state level taxes will be replaced by GST such as sales tax, octroi and entry tax, entertainment tax, luxury tax, taxes on betting, lottery and gambling and more.
Impact of GST implementation on small business
- The current system defines in several state VAT acts differs from state to state. In current tax frame Rs. 5 Lac is the threshold for a plurality of large states. But after GST a threshold of annual turnover of around Rs. 10 lac for all goods and services, for all state and union regions may be applied.
- GST has an acute concept of charge on adding the value at every stage of purchasing and selling in supply chain.
At present many firms are working on GST and providing all minor and major updates with GST apps. The apps are available on both platforms android and ios which come in simple and light user interface.
Related : GST APP FOR IOS
