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GST
The Goods and service tax or GST is the substitution of the indirect tax which is implied in India for all the commodities supplied. GST (Goods and Services Tax) is an indirect tax (sometimes known as a consumption tax) imposed on the supply of goods and services in India. It is indeed a location, multistage, general tax: complete as all the taxes are included, with the exemption of some states levies. The GST, nothing more than multi-staged GST, is levied at each step of production, but it will be reimbursed to all concerned parties within various stages of processing except the ultimate user, but as a location tax, it is accumulated from the place of consumption instead of the original location, as prior taxes were.
TRADERS
A trader is a person who is engaged in the buying and selling of goods and services and earns profits in this process. In financial terms, a trader can be any organization, person, or entity who are engaged in buying and selling any financial instruments like cryptocurrencies, shares, bond, commodities, or mutual funds.
IMPACT ON TRADERS
There was a big impact of the Goods and Service Tax on the Indian market of goods and services. If one holds a business or if one is planning to start one, one can think of how the GST rates will impact that person.
It saves time with simple calculations: Before GST came into effect, one as a business owner should have to maintain a record of all the types of taxes and the timeline of payment. One might have to hire persons to have a look into this and take care of the filing of taxes and the documentation. Removing all the different types of indirect taxes by GST has made it easier for businesses to keep the track of all the taxes.
Offers concession: Before GST came into effect, the small businesses had to give VAT tax which was different in every state. It was especially complicated for those who run their businesses in different states. Under this new regime, one is not required to register the business for GST if the business operates within the state and does not have a turnover of more than Rs.20 lakh. If the business has a total combined turnover of not more than Rs75 lakh, as a trader when one opts for a compensation scheme under GST, as a trader one has to pay only 1% tax, as manufacturer 2% and as restaurateur 5% tax.
Has the online system of credit to detect fraud: GST which is a full system of online taxation is replacing the system of filing the documents manually. This helps to easily identify the tax fraud and it keeps the transactions much more transparent and the accountability is much easier. And also any errors made during the filing of the GST return is easier to rectify.
CONCLUSION
GST established a system known as “one nation one tax”, however, its impact on individual businesses varies. Based upon whether the business is involved in the production, distribution, or retail, or if it is delivering a service, the very first degree of difference will emerge. GST improves India’s industrial sector’s productivity and competitiveness. This industry is concerned about decreasing exports and rising infrastructure investment, to name a few issues. Various indirect taxes have also raised administrative expenses for manufacturers as well as the retailers, but now that GST is already in place, its compliance load has been reduced, and this industry is expected to develop even faster.
