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Gst Essay

Decent Essays
INTRODUCTION TO THE GST
GST is one indirect tax for the whole nation, which will make India one unified common market. It will remove all other indirect taxes like central excise duty, vat, service tax, luxury tax, entertainment tax, purchase tax etc.
.By incorporating multiple taxes into a single tax system, the complexities would be reduced while tax base would rise substantially. Under the new GST process, all entities that are involved in buying or selling of goods or providing any services or both are required to obtain GST registration compulsorily.
Entities without the registration of GST will not be permitted to collect GST from customer or claim the input tax credit of GST paid. Also, the GST registration is mandatory once an
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(iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser investment of resources and manpower in maintaining records.
(iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc. (v) All interaction to be through the common GSTN portal- so less public interface between the taxpayer and the tax administration.
(vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions. (vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system. (viii) Timelines to be provided for important activities like obtaining registration, refunds, etc. (ix) Electronic matching of input tax credits all-across India thus making the process more transparent and accountable. (C) Benefit to Consumers:
(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and service supplier.
(ii) It is expected that a relatively large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost less for the consumers;
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