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Title : 7 Benefits of GST for business Which You may not Know
link : 7 Benefits of GST for business Which You may not Know
7 Benefits of GST for business Which You may not Know
7 Benefits of GST for business Which You may not Know7 Benefits of GST for business Which You may not Know - Hello Friend Accounting Methods, In the article you read this time with the title 7 Benefits of GST for business Which You may not Know, We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article business, Article GST, We write this you can understand. Alright, good read.
Title : 7 Benefits of GST for business Which You may not Know
link : 7 Benefits of GST for business Which You may not Know
7 Benefits of GST for business Which You may not Know
After coming of GST Law and its update, there is the challenging work for Business persons, CA and accounting professionals to learn it and work as per its provisions. Still learning of anything is always challenging but if you will learn the benefits of GST, you will motivate to learn GST fastly for your business growth. So, today, we are explaining 7 Benefits of GST for business Which You may not Know
1. Get Input Credit of Tax on Service from Tax on Goods
In single month, Govt. will compare whole your sale of goods and services. If you have paid tax on services but not sold, its input credit now can get from tax of sold goods. On this basis, your net GST liability will determine. In past, it was not possible. In past service tax credit was possible only from input of service tax not VAT.
2. Sell Stock at Low Cost to Other State's Customers
GST is same rate for whole India controlled by Central Govt. of India. Now, it will help to sell stock at low cost to other state's customer. See how
In Old System
When goods are sold to other state businessman, central sales tax is charged.
Delhi to Maharashtra = Rs. 100 + Rs. 10 = Rs. 110
Maharashtra businessman unable to get the credit of his paid Tax Rs. 10. So, he will send the burden on final customer. So, his price will will be 100+10+20 = Rs. 130
In GST
Delhi to Maharashtra = Rs. 100 + Rs. 10 = Rs. 110
Now, Maharashtra businessman will get credit from IGST because he paid it. and its burden, he will not send on final customers.
100+20 = Rs. 120
3. Saving of Entry Tax for Crossing One State to Other State
Now, there is no entry tax. Only IGST will apply and sell from Punjab to Karnataka. So, where to keep warehouse or not will not depend on tax factor.
4. Tax Liability on the Basis of Value Adding in Product
If a person is manufacturing anything. Now, he is not manufacturer. He is just value adding like other dealer. When he buy the raw material and service for manufacturing the goods, he will pay the value including GST. When he will sell the same manufacturing product, it means, he added the value. So, he will receive GST from other dealer. His net GST liability will be difference between GST received and GST paid. Now, there is no concept of excise duty, central excise and VAT and service tax. Because all taxes have merged in single GST.
5. No Need to Go for VAT Registration for Different State
Every state was different VAT, if you had to sell different state, you need to do VAT registration. So, you have to follow that state's VAT law. Now, there is single GST law which have to follow by all business persons.
6. Benefit to New Small Business
If you have started your new business and your annual sale is less than Rs. 9 Lakh in Northen India and less than RS. 20 Lakh in rest India, you need not fill the GST Return.
7. Clear Provision of GST regarding eCommerce
Before GST, there are different provisions in different state VAT laws regarding selling goods through online website. So, it was difficult time for ecommerce business holders. Now, there are clear provision of GST regarding eCommerce business in GST Law.
Thus Article 7 Benefits of GST for business Which You may not Know
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