Good service and tax return network

1. Advantages Of GSTN

3. Introduction  The Goods and Service Tax Network (or GSTN) is a non-profit, non- government organization.This portal will be used by the government to track every financial transaction, and will provide taxpayers with all services – from registration to filing taxes and maintaining all tax details.

4. Points to Consider  GST Removes the cascading impact of taxation  Composition strategy for small companies  Simple and Effortless online process  Improved efficacy of dispatch

5.  GST Removes the cascading impact of taxation: GST is a extensive indirect tax which was developed to attract the indirect taxation under one umbrella. More to the point, it's likely to remove the cascading effect of taxation which was evident earlier.  Cascading tax effect can be best called'Tax on Tax'. Let us take this example to know what is Tax on Tax:  Before GST regime: A consultant offering services for state, Rs 50,000 and charged per service tax of 15 percent (Rs 50,000 * 15% = Rs 7,500).Then state, he'd purchase office supplies for Rs. 20,000 paying 5 percent as VAT (Rs 20,000 *5% = Rs 1,000).He needed to pay Rs 7,500 output service tax without getting any deduction of Rs 1,000 VAT already paid on stationery.His total outflow is Rs 8,500.Higher threshold for registrationBefore, at the VAT structure, any business with a turnover of more than Rs 5 lakh (in most countries ) was liable to pay VAT. Please be aware that this limit differed state-wise.Under GST regime, however, this threshold has been increased to Rs 20 lakh, which exempts many tiny dealers and service suppliers

6.  Composition strategy for small companies: Beneath GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit since it provides an option to lower taxes by simply using the Composition scheme. This movement has brought down the tax and compliance burden on many small businesses.  Simple and Effortless online procedure: The entire procedure for GST (from registration to filing returns) is made online, and it is super simple. This has been beneficial for start-ups especially, as they don't need to run from pillar to post to become different registrations like VAT, excise, and service tax.  Improved efficacy of dispatch: Earlier, the logistics business in India had to keep multiple warehouses across states to prevent the current CST and state entry taxation on inter-state movement. These warehouses were forced to function below their capability, providing room to greater operating expenses. Beneath GST, but these limitations on inter-state movement of goods are lessened. As an outcome of GST, warehouse operators and e-commerce aggregators players have shown interest in setting up their warehouses at strategic locations such as Nagpur (which will be the zero-mile town of India), rather than every other city on their delivery course. Reduction in unnecessary logistics costs is already increasing profits for companies involved in the distribution of products throughout transportation.