The Indian government got rid of the multiple taxation system on the stroke of midnight of 1st July 2017. The taxpayers got the relief ever since the government passed the GST act. With the implementation of the GST Act, the effect of various taxes got diminished to some greater extent. Due to the one tax one nation concept, the Government of India added different taxpayers under the one raider of GST.
Though GST has been one of the positive outlooks of the Indian government, there are various GST bill advantages and disadvantages. Here are some of the benefits that small businesses in India face due to GST implementation.
Low tax burden
Before introducing the GST system, the small and medium enterprises had to deal with multiple taxations that prevailed in the country. Over 60% of the tax burden for every small trader and dealer tends to reduce drastically. Therefore, these sectors can grow their business without being overburdened by the taxation system.
Improvement in the logistics
Under the regiment of GST, there would not be any taxes on the goods sold in India. But with the introduction of GST, the small business owners need not have to pay the octroi taxes whenever they are transporting the goods from one place to another in India. It will expedite the smooth movement of goods across the nation. It will help to improve the logistics. According to the study, the whole system helps to reduce the logistic cost by 20%. It has provided some excellent manifolds.
No distinction between the goods and services
Previously the business organizations providing various goods and services needed to calculate the service tax and VAT individually. But the process of GST made the calculation much more effortless. The ambiguity between the previous taxation processes got eliminated. It is one of the benefits of GST and a boon to the small business organizations in India. Small and medium enterprises now need to calculate the tax on their final products. It made the methods of invoicing a simple one.
Easy to start a business
Every small and medium enterprise with its operations in India needs to get itself registered under the VAT registration. Due to that, they need to go for the different tax rules that prevail in the various states in India. It does nothing but adds more complications to the whole process. With the help of the centralized system of registration, starting a business became very easy. Along with that, one can think about the consequent expansion of their small business. Also, one can see a growth in the small and medium enterprises loan in India.
Easy online procedure
The best part is that you can deal with the entire process of the GST registration online. The GST online system has been very beneficial for entrepreneurs and start-ups. They need not have to run from post to pillars to obtain diverse registration processes, including the service tax or VAT.
Changes, in any case, are not that easy. But the Indian government is trying its best to smooth the roads and the edges of the GST registration. You must imbibe the various benefits of GST and experience the advantages of such a unified taxation system. Moreover, if you want to use this taxation system thoroughly, you need to be GST compliant at every point in time. Make sure that you understand the whole process of GST registration before applying for it.