GST (Goods and Service Tax) is one of the significant undertakings of the Indian Government that provides the necessary stimulants to economic development in India. It removes the multi-tier taxation system from the entire manufacturing level to the consumption level.
GST intends to turn India into a common national market, thereby laying grounds for an integrated economy. It also significantly boosts the ‘Make in India’ initiative, which makes Indian products globally competitive. A uniform taxation system boosts economic growth and enhances a country’s GDP. Moreover, the robust IT infrastructure of GST has minimized corruption and has simplified the payment system and returns.
Ways in which the implementation of GST helps the growth of the Indian economy
Goods and Service Tax (GST), a tax reform that promotes “one nation, one market and one tax”, boosts the Indian economy in several ways.
Simplifying tax structure
The previous taxation system was extremely convoluted. The multiple layer taxes added to the cost of goods. GST India ensures common tax rates across the country, thereby bringing uniformity to our taxation system. Moreover, with the integration of GST, compliances for SMEs have become more convenient.
The subsuming of different Central and State tax rates lowers the cost of goods and services, enhancing the competitiveness of our nation’s trade and industry domestically and internationally. Moreover, the implementation of GST has mitigated the custom duties on exports.
Another notable benefit of GST is that is has made it feasible for SMEs to sustain themselves. Entrepreneurs who were willing to start out their venture had to undergo VAT registration, but VAT registration was tedious. Moreover, VAT varies from state to state. However, with the onset of GST, businesses will be registered only under GST, thereby making transactions easy and transparent.
Offering easy online process
GST is majorly technology driven. The entire GST procedure, including GST registration to filing GST returns, is online. India’s supply chain has been solidified with the introduction of GST Network and E-way bills. In this context, individuals must know how to register for GST online.
However, before registering for it, individuals must have a well-rounded idea regarding GST bill advantages and disadvantages. It will help them take informed steps.
GST-registered enterprises are considered credible both by customers and financial institutions. By submitting GST registration papers, business professionals can easily avail of an external line of credit like a business loan.
Every enterprise needs external credit options to enhance its liquidity, profitability and solvency. Business loan helps these businesses to access high-value loan amounts and meet their working capital requirement and carry out daily operational activities smoothly. However, applicants must know how much working capital their business needs.
Knowing the exact amount to borrow will prevent applicants from over-borrowing. Moreover, they must be aware of the important checklist before applying for a business loan.
Furthermore, leading financial institutions like Bajaj Finserv extend pre-approved offers. These offers streamline the lending process and are available on various financial products like business loans, personal loans, credit cards, etc. Intending borrowers can check their pre-approved offers by submitting their names and contact details.
To sum up, GST (Goods and Service Tax) removes the bundled indirect taxes and brings uniformity and transparency to the taxation system. The impact of this tax reform is profound. By easing down compliances and broadening the tax base, the GST regime is anticipated to bring back buoyancy in revenue.