Benefits – Know Advantages & Disadvantages of GST in Detail

Benefits – Know Advantages & Disadvantages of GST in Detail

Benefits – Know Advantages & Disadvantages of GST in Detail

Comments Off on Benefits – Know Advantages & Disadvantages of GST in Detail

GST was introduced on 1st July 2018, GST (Goods and Services Tax) is an indirect tax levied in India for reducing the amount of various taxes. GST has reduced the cascading effect of several taxes. GST has removed the tax such as VAT (Value Added Tax), Service Tax etc. The government of India has mandated every business holder to register themselves under GST. GST registration should be done when the business falls in GST registration criteria.

As GST holds few Pros, there are few Cons as well. So here in this article let us understand what are the Advantages and Disadvantages of GST.

Advantages of GST

  • One of the major GST benefits is that GST has reduced several taxes or the cascading effect of several taxes.
  • There is a great reduction in the returns and compliances, earlier there were several taxes which has its own compliances. But now GST have reduced the burden for filing such compliances as GST is the only tax now.
  • The GST registration can be completed with a simple and online procedure.
  • There is a decrease in product prices, which has become beneficial for the customers. The threshold has increased; earlier the taxpayer has to register himself when the annual turnovers use to exceed 5lakh or 10 lakh. But, since GST established the limit exceeded to 20 lakh, which means when the taxpayer has to register himself only when the annual turnover exceeds 20 lakh and (10 lakh for the North Eastern States).

Disadvantages of GST

  • GST has been segregated in 5 rate slabs and the tax is different for every product, it is believed that garments have become more expensive since GST came into existence.
  • GST will increase the operational cost.
  • Completing GST registration online might not be possible for every individual.
  • Small-scale industries will have to face few tax burdens. Earlier the taxpayer has to pay the excise duty only when the annual turnover exceeds 1.5 crores, but now onwards the tax has to be paid when the annual turnover is above 20 lakh rupees.

GST has been introduced after a long research and made sure that it will be beneficial for the people as well as the traders. This might effect in both possible ways which is negative as well as positive. For detailed information regarding GST you can visit online GST portals and get detailed information from the expertise.

Clare Louise

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