The Goods and Service Tax (GST) came into effect on June 30, 2017 amidst numerous controversies. While on one hand, economists said that GST would bring nothing else than inflation, others claimed that it will make the economy healthier than ever. Now, irrespective of the claims and actual consequences, the business sector has been widely affected in both negative and positive ways. Let’s take the time out to discuss the GST benefits or pros and cons for businesses:
Pros of GST for business
- Higher Tax Exemption: As per the previous limit, startups earning more than Rs 20 lakh were liable for tax payment as per tax-slab they fall in. However, with GST the limit has been raised to Rs 40 lakhs per annum and thus, businesses are able to save more.
- Tax Filing has become Easier: Previously, startups had to go through a lot of problems while filing tax such as calculating the different taxes such as VAT, excise duty, service tax, and other involved numerous complexities. However, now they can simply calculate the GST using GST calculator and get done with the process.
- Only One Registration: Businesses with manufacturing branches in different state had to register for VAT in each of those states. Needless to say, this was nothing less than a hassle for them. Now, the process is simplistic: one registration for GST and that’s all. Here are some key points you should know if filing GST returns first time.
Talking about the cons, there isn’t much to say but you can refer to this article titles “Take A Look At Some Of The Pros And Cons Of GST On Startups” for more.