What is the GST bill ?
The Indian parliament decided to Introduce the Goods & services Tax (GST Bill). It was introduced as The Constitution (One Hundred and First Amendment) Act 2016, following the passage of Constitution 122nd Amendment Bill.
The GST bill is an indirect taxation method that aims to combine most of the existing taxes under a single umbrella.
This is expected to help a lot of the current businesses. Take a look
Advantages of GST bill to the SME sector :
The SME’s ( Small and Medium enterprises ) will have a lot of advantages from the GST bill implementation, some of them are as below.
- The SME sector will benefit the most from GST as the tax administration cost will be reduced by cutting down cascading taxes and bureaucracy .
- The costs may come down because of this bill
- Reduction in tax burden on start-ups,
- Uniform tax compliance standards,
- End of difference between goods and services.
- For the SMEs ( Small and Medium scale Enterprises) it will be extremely easy to grow their business, as the inter-state tax difference will be gone and this will lead to improved logistics and faster delivery services.
- According to CRISIL, with removal of entry costs, the payment on the inter-state check point and toll gates will be stopped and the bulk goods manufacturers will see a 20% increase in their profits.
Support for the GST Bill
The GST bill has a strong support from most of the economists in the country, even former PM Manmohan singh has given his strong backing for it. This bill is expected to simplify the entire taxation process for the businesses.
Most Small and Medium Enterprises (SME’s) will save a lot on the taxes they pay as well, therefore, giving them the opportunity to make better profits.
Every smart Indian businessman realizes that taking his business digital is the need of the hour. Hence, use applications like this makes managing your business hassle free.
Also, make sure the Accounting and Invoicing application you use is GST bill compatible.
Read more about it Here.