Understanding the Basics of GST in India
The Goods and Services Tax (GST) is a comprehensive, multistage, and destination-based tax that is imposed on every value addition. Introduced on July 1, 2017, the GST is a unified indirect tax on the supply of goods and services right from the manufacturer to the consumer. It replaced many of India's cascading taxes issued by the central and state governments.
The Role and Impact of GST on India's Economic Landscape
GST played a pivotal role in shaping India’s economic landscape by establishing a holistic and simplified indirect tax regime. By removing the cascading effect of taxes, GST facilitated a uniform tax structure, fostering a positive impact on several sectors. It has improved the ease of doing business, increased government revenues, minimized tax evasion, and bolstered the overall GDP. Moreover, GST brought the entire nation under one seamless, integrated market, driving competitive prices and a broader tax base.
Breakdown of GST Related Services in India
The GST related services in India encompass a wide range. Accountants and firms offer comprehensive GST services, including GST registration, filing of periodic returns, handling GST related compliance, and offering advice on applicable taxes on goods and services. Further, consultants provide litigation services for GST related disputes. Many software companies also offer GST filing and accounting software, making it easy for businesses to stay GST compliant.
The Process of GST Registration and Compliance in India
The first step towards GST compliance is GST registration. Any supplier of goods and services who makes a taxable supply with an aggregate turnover of over Rs.40 lakh is required to register as a normal taxable person under GST. For north-eastern states, this threshold is Rs.10 lakh. The process involves the submission of essential documents, including PAN, proof of business registration, identity, and photographs of the promoters/directors, proof of place of business, and bank account details. Upon successful validation, a GST Identification Number (GSTIN) is provided.
Post-registration, businesses must file GST returns electronically, usually on a monthly basis. Late filing results in penalties and interests. Most businesses use GST accounting software to ease this process.
Future Prospects and Changes to GST and Related Services in India
With the changing economic scenario in India, GST is expected to evolve further. Future changes may include simplification of the GST returns filing process, reduction in the number of GST slabs, and amendments regarding Input Tax Credit. The GST council is also expected to consider expanding GST levy to industries such as energy, petroleum, and real estate that are currently outside its ambit. Further, more digital solutions, aiding in GST compliance, are predicted to hit the market, making GST compliance easier for businesses.
In the light of increasing adoption & integration of advanced technologies, GST related services are likely to become more streamlined and efficient, promoting transparency and contributing to the growth of India's economy.