What is GST? its advantages and disadvantages & how it be taken :
What is GST?
Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. Under the ‘One Nation One Tax’ initiative, the Government of India (GOI) has rolled out a comprehensive and unified consumption tax scheme to replace multiple indirect taxes on goods and services. GST in India brought to reduce corruption and evasion it has subsumed almost all the indirect taxes except a few state taxes. Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%. However, electricity, alcoholic drinks, and petroleum products are not taxed under GST and instead are taxed separately by the individual state governments. Since the GST scheme was introduced on July 01, 2017, the 1st of July is celebrated as GST Day.
Advantages of GST
1). Coming under food items like basic food grains and spices (category 0-5% GST) is highly beneficial for the customers as they are cheaper. Packaged products like shampoo, tissue paper, toothpaste, soap, and electronic goods have become cheaper.
2). One of the major benefits of GST is the fact that the consumer will be able to avail of the product at the same price anywhere in the country.
3). The benefits of GST for the Indian consumer are immense as it has reduced the burden of many people. It is important to know that GST is a tax that buyers do not pay directly to the government. They pay it to the producers or sellers. And, these manufacturers and sellers then pay it to the government.
4). Consumers had to pay separate taxes earlier, but now they have to pay only one tax. A customer will be able to avail GST cost which will be less than VAT or Service Tax.
5). GST is aimed at reducing corruption and sales without receipts.
6). GST reduces the need for small companies to comply with excise, service tax, and VAT.
7). GST points toward a positive impact on India’s GDP. It is expected to increase by at least 80% within the next couple of years.
Disadvantages of GST
1). Some economists say that GST has hurt the real estate market in India, which has increased the cost of a new house by 10 to 12 percent.
2). With GST, Insurance premiums have become more expensive.
3). Some Experts say that CGST (Central GST), and SGST (State GST) are nothing but new names for Central Excise/Service Tax, VAT, and CST. Hence, there is no major reduction in the number of taxes.
4). Petrol is not under GST, which goes against the ideals of the unification of commodities.
5). Some retail products past had only a four percent tax on them. After GST, garments, and clothes become more expensive.
6). The aviation industry has been affected. Service taxes on airfares had ranged from six to nine percent. With GST, this rate has surpassed fifteen percent and effectively double the tax rate.
Under GST, Became cheaper such things/items for the common man
1. Prices of movie tickets
2. Food including fresh meat, eggs, milk, buttermilk, curd, natural honey, fresh fruits and vegetables, flour, gram flour, salt, Prasad, and bread had become cheaper.
3. Electricity
4. Stamps, judicial papers, printed books, newspapers.
5. Apple has slashed the price of i-phones.
6. Paint, cement, electrical items, and consumer durables are got cheaper.
7. Entry-level cars and two-wheelers are more affordable now.
8. television and some electric items became cheaper.
Under GST, Became costlier such things/items for a common man
1. Mobile Bills/recharge, Internet, wifi, and DTH Services
2. Banking and investment management services
3. School Fees, Health care, and courier services get expensive.
4. Tobacco products and Cigarettes.
5. Small cars have more expensive because they are under the bracket of 28%.
6. Due to GST, All beauty products and luxury products are expensive.
How to register for a GST Number?
First of all, you need to log on to the online portal of GST - https://www.gst.gov.in/ And create a login ID. After that fill out the form GST-REG-01 or part 1 of the Registration form. Fill in all the requested details (Including your PAN number), email address, and mobile number. Once the verification has been successfully done you would be provided an applicatreferenceence number through email or mobile and asked to fill the form GST-REG-02 by using said number. Now you would need to upload some documents online.
List of documents you need to upload
1. Photographs
2. Constitution of the taxpayer
3. Proof for the place of Business
4. Bank Account details
5. Verification and Aadhar authentication, if chosen
Within three working days, the GST officer would start to verify your application and documents and if everything is fine your application would be approved within seven working days, you would receive your GST certificate registration in the shape of the form GST-REG-06. You will be able to download it from https://www.gst.gov.in/ with the help of your log-in ID and password.
