The GST was introduced in India on 1 July 2017. In basic words, it is a progressive tax structure that removes the former 17 taxes that were already in place, like utility tax, excise duty, sales tax, VAT, etc. With the emergence of this tax, all companies providing products and services must enroll under the GST in order to carry out their operational activities.
Here are some of the main benefits of GST implementation in our country
The Eradication Of The Double-Taxation Effect
When the GST was adopted, the cascading impact of taxation such as federal income, logistic expenditures, manufacturing costs, etc. was eliminated. This tax burden had a detrimental effect on the customer because the prices of goods and services became higher. Now that GST is in place, the cost of the finished commodity, goods, or services is lower than the previous tax regime.
Simplification Of Indirect Taxes
The main goal of introducing the Goods and Service Tax was to substitute and supplant indirect taxes which were part of the existing taxation system. It has become extremely complicated as taxes were imposed on products and services at the federal and state levels. After the introduction of GST, several of these taxes were removed and replaced by one standard tax.
The state-level taxes that were substituted were State Value Added Tax (VAT), Luxury Tax, Central Sales Tax, Entertainment, and Amusement Tax, Entry Tax, Activity Taxes such as gambling winnings, wagering, and Gaming, Purchase Tax, State Surcharges and Taxes (as long as they concern the supply of goods and services). In total, GST substituted and swallowed up 17 indirect taxes.
Penalties For Failing To Register Under GST
It is compulsory for all companies operating in India to enroll for a GT certificate if the corporate body doesn’t quite register (unknowingly) and continues to function, they will be obligated to pay a fine which may cost around 10% of the taxable amount or Rs.10000 (usually the greater amount of the two).
Now, if the business owner has intentionally failed to enroll his organization under the GST, he will be considered to be operating illegally in the eye of the law. In circumstances such as these, a fine of up to 100 percent of the taxable amount may be charged to the business owner.
Ensure that you prevent any problems and enroll your firm as quickly as possible under the GST system. The government has set up a GST platform solely for the purpose of signing up and acquiring a GST certificate and a GST number much easier. In reality, most of the GST oriented issues can be carried out on the Official website.
Making Online GST Payments
Once registered on the Official GST website, you may go ahead with making your GST payments. Here are the steps you can follow in order to make your payments.
- Visit the GST website
- Click on the “Services” button and the select payments option
- Now click on the “Create Challa” option
- Here you are required to enter GSTIN
- Now you will be shown a captcha code, enter the code as displayed
- Enter the required tax information
- Choose the “E-payment” option
- Click on the “Generate Challan” button
- You will now receive a One Time Password (OTP) enter the OTP
- Now click on the “E-payment” option and then click on “Netbanking”
- Choose your bank from the list of banks displayed
- After choosing your bank click on “Make Payments”
The webpage will instantly be redirected to the bank that you selected, and a message will appear (transaction successful). Then, once more, you would be brought back to the GST page where you can see a GST invoice for your electronic GST payment.
There undoubtedly more to GST, as there are various types of registrations, different types of GST taxes. The implementation of GST also has helped businesses all over the nation, especially small and medium organizations by reducing the number of tax obligations and also the number of compliance laws. It goes without saying that this was a much-needed tax reform in India.