GST (Goods and Services Tax) was introduced on 1st July 2017 as an indirect tax to replace all other forms of taxes that were previously applicable. As promising as this new taxation system may seem to be, it also has its shortcomings.
Let us have a look at the pros and cons of GST, starting with the pros.
Tax collection has become simple and easy.
The stress of taxation from Indian manufacturers has been eased allowing the increase in the scope of production.
It unites the nation from an economic point of view by removing the state trade barrier.
GST is a unified taxation system with a concrete and transparent infrastructure.
It creates a healthier business environment by reducing the transaction costs of doing business.
Sounds great, doesn’t it? Unfortunately, GST also has its cons.
GST takes the money from the consumers instead of the manufacturers, hence it can’t be said to be consumer friendly.
The tax burden is higher for small businesses in the manufacturing sectors.
It increases the burden of compliances for all businesses.
Since it is a new system, businesses have to make major changes to adapt to this new system which may disrupt the balance of organizations.
There may be a loss of revenue for manufacturing states.
The implementation of GST has been significant or our country. Now, only time can tell whether it has been a good move or not. For help regarding issues with GST in Bangalore, you can get in touch with us.