GST, the biggest Tax reform, is all set to celebrate its first birthday on 01st July, 2018. The birth of this biggest Tax Reform attracted more criticism than praises.
It is therefore necessary to analyze how GST manage to answer those who have criticized it as born with many disabilities.
This article is basically focuses on benefits GST has provided compared with the previous Tax regime.
Although it may have faced challenges in implementation phase, but it has eventually it has become the most beloved tax regime.
Being a CA student I have studied the earlier taxes like Service Tax, Central Excise Tax in detail, and also the current GST. In my opinion GST is the most simplified tax regime unlike the earlier system of taxes.
So, let us have a look at various benefits it has provided to the Dealers:
1. Various Definitions: The definitions given under GST are much clear cut than what we have seen in the earlier tax regimes. It is obvious that being the new tax the definitions given may lead to more than one opinion, but we must wait for the judicial pronouncement which will ultimately settle this issue of more than one opinions.
2. Registration Procedures: One of the easiest in the GST is to take registration. No need to visit the office physically to get yourself registered. Upload the 3-4 documents and get the registration certificate by sitting at home within a weeks time. This has also completely finished corruption. So, only win win situation here.
3. Return filing procedures: After its birth we may have faced some difficulties in filing return under GST, and it was obvious for getting adapted to a new thing it require us to give it some time. And, GST did overcome this difficulty like a champion. And, after one year everyone should agree that the return filing procedure is the simplest possible.
4. Provisions/Rules: Like definitions provisions under GST are also direct, and clear cut compared with that under earlier tax regime. Our Government did everything possible to clear out any doubt regarding any provision by answering questions of dealers. And, like definitions here too their may be more than 2 opinion regarding one provision but we must wait for the judicial pronouncements which will clear out any ambiguity that may be existing in the current provisions. I must say there is no room left for the evaders.
5. Penal Provisions: Those who have tried or who wants to break the provisions should be ready to sacrifice their nights sleep. Yes, the penal provisions are so harsh that it may land you up in jail. So, one must stay away from this by complying with the provisions of law. We have seen evaders being jailed for taking undue advantage our new tax regime which is just few days away from its birthday celebrations.
6. Grievance Mechanism: I have seen myself visiting sales tax offices physically to get solution on any issue, and it would take months to get issue resolved. But, under GST regime with the help of online Grievance Mechanism, and toll free number any issue gets resolved within 24 hours. This timely redressal of our problems has also cheered up the confidence of dealers.
So, to sum up I would like to recall the saying “Time heals all wounds”, and same with our GST. We should give it some time and I am sure it will heal all the wounds. We must give our utmost support to this new regime, and I am sure it will only do good than bad.
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