What are the benefits of GST goods and service tax for businesses in India

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GST Benefits for Business

Good and Service Tax (GST) is a complex indirect tax levy on manufacture, sale, and consumption of goods and services across India. New Goods and Service Tax (GST) has been implemented from 1st July 2017, it has removed all indirect taxes levied by the Central and State Government. The Central and State government implemented GST almost on all goods and services which is produced in India or imported in the country.

Taxation structure of GST 

Implemented by the Government, simply means that now the startup or small businesses would more enjoy it. The new GST regime will help and provide an opportunity to do business across India as well as who are planning to start up their business in the Indian market. The whole nation will be benefited from GST implementation in India, but a startup or small businesses have several reasons to enjoy it. India’s Goods and Services Tax rolled out in July 2017 with a great deal of fanfare. Although there have been some technical glitches and bumps along the way, the GST regime has some exciting benefits for small businesses. When you take full advantage of the GST’s perks, you can save time, boost your customer base, and change your business for the better.

• Easy Filing:- For small business owners, one of the best parts of the GST is its convenience. In the old system, your company had to pay and track a variety of taxes, including service tax, central excise duty, purchase tax, luxury tax, and countervailing duty. With GST, you only need to pay a single tax, making your monthly and annual returns much easier. That means you can stay compliant without spending money on a tax professional.
• Reduced Trade Barriers:- One of the most exciting benefits of GST is the reduced trade barriers between states in India. Before GST, selling to customers in other states was difficult, thanks to the complicated state, interstate, and national taxes involved. To make matters worse, each state had different rules. For small companies, this extra burden was often impossible to bear, resulting in a limited customer base. Because GST eliminates all the varied state taxes, it opens up the whole of India to your business. With GST, you can ship products anywhere in the country and still pay the same tax rate.
• Improved Tax Credits:- One of the biggest problems with India’s old tax regime was cascading taxes. Because of the many different levies, you were often forced to pay tax on tax. To reduce this problem, GST created the input tax credit (ITC), which extends seamlessly through your supply chain. The concept is simple — you buy supplies for your company from different vendors, and you pay GST when required. Then, when you sell your products or services, you charge GST to your customers. Each month, the government expects you to pay that amount in taxes. That’s where the ITC enters the equation. With this credit, you can subtract the GST you paid to your vendors from the amount you owe to the government. That lowers your tax bill, allows you to reduce your prices, and ensures that you only pay GST on the value your company added.
• Fast Shipping:- Before GST, shipping your products between states was often a hassle. Tax checkpoints at the borders often forced truckers to wait in line for hours to pay interstate taxes and other state and local taxes. This process drove up prices for fuel and created an extremely inefficient shipping system. The GST regime aims to solve these problems. Because the tax gets rid of the various national and state taxes, your drivers don’t need to stop to pay tax. As part of GST, the government is eliminating border checkpoints, which saves time and fuel and helps your products arrive on time. For small business owners, the GST system is relatively easy to master. Once you get the hang of the new forms and filing requirements, you can streamline your accounting workflow to save time and money. Reduces Taxes: GST in India reduces the number of indirect taxes such as excise duty, customs duty, VAT, entertainment tax and so on. So the small businesses and startup will be benefited from a reduction of taxes and enter the Indian market. Taxes Break: In the GST system, when all taxes are combined, it might be that the burden of taxes will break equally between manufacturing and services.
• Simple Taxation Process:- Startup or small businesses has to spend lots of time, energy and money to understand the complex taxation structure system and then implementation in business, GST in India would help and combine all the indirect taxes. With the GST in India, it affects all of society. The businesses are sure to be affected by it. Small businesses or start-up have to cooperate with this new taxation system. Small businesses or start-ups now required to know which taxes to pay, how the tariffs apply, the quantum of the taxes and the procedures for calculation.
• Tax Exemptions:- The current taxation structure, any business whose turnover exceeds Rs 500000 is compulsory to register for VAT and pay the taxes (VAT) to the government at a particular time. With the GST implementation in India, the limit has exceeded up to Rs 1000000. Businesses whose turnover between Rs 1000000 to Rs 5000000 would be taxed at a lower rate.
• Easy to do Business:- In the current scenario several small businesses in India, specifically small businesses in the e-commerce portal are challenging with a lot of tax-related problems. The problem may differ from state to state because every state has a different taxation structure. With the GST implementation in India, the taxation structure would be consistent. It would provide more smooth functioning to business.
• Better Economic condition:- GST will not be levied at each stage of the supply chain just like VAT. GST will incur and born by the end consumers or users at the time of consumption of goods and services. GST in India will improve the economic conditions and develop a common national market.
• No Cascading taxes:- Several taxes levied at each stage of supply chain and on interstate transfer of goods and services causes cascading taxes. Thus cascading taxes, act as a hidden cost and it increases the overall production of goods and services. GST is based on input tax credit mechanism, thus it eliminates the process of double taxation.

Remote workspace/Virtual Office space for Indian businesses to make it easy for them to take Business Registration/GST Registration 

As we know that in today's technology-driven businesses are giving services on PAN India basis or all over India. Now as per GST rule, it is mandatory to take GST registration, if any Indian business is providing goods/services in a particular state. Now to get GST registration it is mandatory to have an office address in that particular state, it means that Indian business/company need to show, Proof of place of business for GST Registration, now in this situation Indian business/company can use Remote workspace/address/virtual office space/address, as not all Indian businesses need or require high-cost physical office space, in this situation a very cost-effective remote workspace/virtual office space, will help Flipkart sellers to get proof of place of business for GST registration in that particular state, at a very low cost, as compared to taking physical office space.
Note:- Remote workspace/Virtual office space is always given at a physical office space. For example co-working space. The cost of Remote workspace/Virtual office space starts at a minimum Rs. 1000/ per month. 

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