In 2016, demonetization took the country by storm and since last year, the new tax regime has left the taxpayers puzzled. This indirect taxation policy was introduced with an intent to transform the Indian market into a single market. Earlier many taxes used to be imposed on the import and export of goods and services. However, now with the new taxation policy, taxes are divided into three categories which are CGST, SGST, and IGST.
These three taxes have subsumed all other taxes. The new tax regime has risen many questions in the minds of taxpayers. This has even led many business persons to use GST reporting tool. They avail services for GST return filing too. Besides, all in all, the changes that this policy has made in the country are positive.
Herein, we talk about five of the major changes that this policy has made. These points will also mention the way GST reporting tool can help you in making the most out of these changes. Take a look.
NO CONCEALED TAXES
Prior to this tax regime, taxpayers used to pay taxes without even being informed about it. There were many taxes like the excise tax, entertainment tax, sales tax, luxury tax, and value-added tax. However, now all these taxes have been subsumed and unified into two- CGST and SGST. Individuals now get a bifurcation of the charges under these, otherwise, lot many times the breakdown of central taxes levied on the products was left unmentioned. The invoices used to indicate the service tax payable and value-added tax.
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However, taxpayers are still apprehensive of the increased tax rates. They should instead be happy about the change as there are no hidden taxes. Moreover, the individuals now get the amount charged in the name of taxes mentioned clearly without any chaos under CGST and SGST.
A GST reporting tool can help a businessman in creating immaculate invoices and other taxpayers in knowing the bifurcation more clearly.
PRICE RISE REGULATION
Before the implementation of the indirect taxation policy in the country, manufacturers used to pay taxes at each stage. This use to increase the total amount incurred for manufacturing a single product. Hence, producers, use to add all the amount they have paid in the name of taxes at various levels to the selling price. This, in turn, was leading to price rise and thus inflation. But now GST has eliminated the old regime of paying tax at each level. Under the new tax regime, all these taxes are removed. Hence, consumers don’t get burdened with taxes imposed during production. They now just need to pay taxes. All this helps in regulating prices. A good GST support portal can also help you in understanding this tax regime apart from helping you in creating invoices and filing GST return.
After the implementation of GST policy, more and more traders have started using electronic mediums to comply with the GST rules. It is so as the government has made everything digital. Traders are ought to file GST returns online. Moreover, business persons who create invoices with the help of computers will have to upgrade their systems. Hence, it is always better to have a GST reporting tool to ensure immaculate invoice generation.
REMOVAL OF CHECK-POSTS
GST is a destination based tax. The statement means that the tax is levied according to the place where the product will be delivered to and not from where it is made. For instance, if the destination of the product is any other country, IGST is levied. IGST is said to be the sum of CGST and SGST. Moreover, CGST is the tax imposed by central government and SGST is the tax imposed by the state government. Hence, the times when there used to be border check posts are gone. Now there is no long queue of trucks at the border of the state which is a great relief. This reduces the time taken for the goods to be delivered. GST software can help you in speeding up the process further.
CHANGE IN PRICE OF ESSENTIAL COMMODITIES
The taxes are being levied on commodities keeping in mind their necessity. For instance, if some product is an item of luxury, the tax imposed is higher on it in comparison to the one which is basic. Essential products enjoyed the bracket of zero tax percent. Apart from this, gold saw an increase in taxes as well.
Moreover, by using GST software, one can focus on the core business tasks well by saving the time he would otherwise use in understanding and comply with the GST norms.