Advantages and Disadvantages of GST Filing
Regarded as one of the biggest tax reforms of the country, GST incorporated several indirect taxes which were enforced by Centre & State such as VAT, excise, and service tax. It’s imposed on both goods & services sold in the country. Any reform has bound to have pros & cons. Here, we’ll go through the pros and cons of GST: GST eradicates the cascading effect of tax: GST is a complete indirect tax that was made to bring indirect taxation under one umbrella. Most notably, it’s going to eradicate the cascading effect of tax that was evident earlier. Higher threshold for registration: Earlier, in the VAT structure, any business with a revenue of over five lakhs was accountable to pay VAT. Also, service tax was excused for service providers with a revenue of less than ten lakh rupees. However, under GST system, this threshold has been increased to twenty lakh rupees, which frees several small traders & service providers. Composition scheme for small businesses: Under GST adm...