The Goods and Services Tax (GST) is a landmark legislation tax that has been implemented with the intent of simplifying the tax system in India. It came into effect on 1st July, 2017. GST was introduced with the intent of making the taxation system more transparent and eliminating the confusion caused by the cascading tax system used in India.
Earlier, the state and central governments used to levy taxes on products and there were a lot of discrepancies leading to chaos. Many goods that made way from one state to another ended up getting dearer and dearer since the states levied their own taxes on top of one another. The price of the one product could vary from one state to another. This led to great frustration and confusion amongst the customers who had no way to see through the cascading tax system.
With GST, uniform taxation system is being followed all over the country and there is no scope for confusion anymore. Given below are people who need to register under GST irrespective of their turnover:
- Interstate Suppliers: All businessmen who are involved in interstate transactions need to register under GST. It must be noted that all import and export related activities come under this category.
- Agents and Brokers: This group encompasses agents, brokers, dealers, etc. that is carrying out transactions on the behalf of their customers. The government has taken precise steps to make GST more inclusive. This ensures that people pay taxes according to their share and there is no manipulation on any end.
- Non-Resident Indians (NRIs): There are several individuals who live abroad but do business transactions in India. They need to register for GST and make a significant contribution to the economy by doing it by the law.
- e-Commerce: All individuals or companies that come under the e-commerce category should be registered under GST. This will ensure that these companies also become a part of the mainstream economic system and come under the right tax slab as everyone else.
To make it easy for businesses to implement GST, IT companies have started providing software that is compatible with GST. The ERP software and other IT solutions calculate values inclusive of GST without any added burden for the business owner. This is of great use to the tyre dealers and other business owners since they do not have to waste time on additional calculations. The process is quite straight forward and has removed any chance of error or speculation.