GST is imposed on the supply of services and products in the entire economy. All the earlier taxes like service tax, value added tax, excise duty, etc. are subsumed into the GST.
The benefits offered by GST are mostly the government or the trading industry. The price of most of the goods and services is supposed to decline after the new reform happens. The Indian goods and services can give better competition in the global market.
The primary objective of GST is to create a national market economy. For such integration of market, there needs to be an integrated tax system. GST is a uniform taxation system which makes the collection of indirect taxes seamless.The IGST or Integrated Goods and Service Taxes will be levied on the imported goods and services and the value of IGST will be the sum of CGST and IGST. So, uniformity can be maintained in the domestic and global market costs.
The GST has increased the tax base for the Government thus increasing the level of compliance within the country. Expanded tax base can provide a greater amount of revenues to the government. Lately, India has been improving on the Ease of Doing Business Rankings due to the more competitive prices back at home.
Earlier the taxes collected were having the problem of double counting. While the taxes levied should be applicable once, they were counted multiple times by the time the product reached the consumer, but when the government introduced GST regime, the tax system has become a lot easier to comprehend and the problem of double counting has been eliminated.
With the uniformity in the taxes levied on the manufacturers and traders, the issues of noncompliance have gotten fewer. Compliance and assessment of the taxes has become easier for the officials and it is easier for the consumers and merchants too due to the transparency in the tax system.
The procedure for tax refunds and the registration process is uniform in nature. All the formats of tax return and registration form is the same and the tax base is the same as well.
The portal that is used for the procedure for registering for GST. Filing for GST and filing for GST return is done on the same web portal so that it is simpler for the user to understand the procedure. The portal also shows the input tax credit of the taxpayer so that they don't have to communicate with the tax administration directly
The domestic demand is supposed to increase and the market flourish due to the implementation of GST, The consumers will have to pay lesser for the same commodity due to a lower burden of taxation on the manufacturer side as well.
The unorganized sectors can be easily regulated via the GST tax regime. Unorganised sectors like textiles show less compliance and are poorly managed; they can be put under a single umbrella of tax system if the GST is implemented properly
Small businesses can earn from 20 lakhs up to 40 lakhs by complying with this new tax regime.