Learn How GST Affects You
Since July 2017, India has been set on GST mode, which enables the taxpayers to pay a single tax instead of multiple indirect taxes. This new indirect tax regime,termed as Goods and Services Tax, has been seen a much awaited reform since independence, which subsumes around a dozen of taxed levied by the central and the state governments. As for taxpayers, this tax is expected to affect their daily life positively in the long run. For instance, it leads to significant reduction in the variety of taxes for businesses, as they have to pay lesser rates and exemptions through a comparably simpler tax regime. For startups and small businesses, GST billing has emerged as a ray of respite from the taxes. In the earlier system, a business having more than RS 5 lakh as annual turnover was required to pay Value Added Tax (VAT). However, under GST, this threshold amount has been replaced by 20 lakhs, which exempts many small businesses as well as startups. Even for turnovers between 20 to 50 lakhs, the businesses can opt for a composition scheme, which requires them to pay nominal tax.
GST has also helped logistic industries appreciably in minimizing their operating costs. It has replaced the earlier system where the businesses from this industry has to keep record of multiple warehouses across different states, to avoid paying current CST and state entry taxes during inter-state movement. As for hotel industry, budget hotels, having room tariffs under Rs 1000 are expected to gain heavily with the introduction of GST billing, as they do not require to pay taxes. The GST however increases with the rise in tariff slabs, with a maximum 28% tax being levied on rooms with tariffs more than Rs 7500.
Feel free to download our software and ease out your GST tax return process.