GST tax is going to be implemented by late 2017 as expected by now and there are many questions related to this new change is arising in everyone’s mind. The questions related to taxation is the bigger one dominating taxpayer’s mind. Well the effect will be huge as the whole structure is going to be changed which will ultimately impact the goods cost. Only few goods and services will be exempted from this law and this will ultimately affect the online income tax return calculation.
The ultimate focus of this new law is to finish the current trend of multiple tax that are levied on different product and in different steps of the reaching consumer’s hand. It will have two different types of affecting phenomena, one is Central GST (CGST) and State GST (SGST). Now talking about the changes or benefits that people are supposed to get are quite a few as described in GST tax.
The new changes to take place:
• It will revive the service and good system with making a well determined tax regime system. This will help in distinguishing between goods and services for the consumers.
• It will eliminate all the current tax system applies to goods and services such as of multiple excise, CST, VAT, service tax calculations. This will change the calculation of online income tax return for the providers.
• It will also eliminate the double taxation process that we are having right now on every purchase we made. Currently, for any item, the manufacturer and consumer both pay tax, which ultimately makes it more costly.
• The current taxation system is more about hiding a good amount of tax between 25%-35%. But the introduction of this Goods and Service Tax system will amend these hidden taxes and will propose new numbers of taxes in a transparent way.
• The other best thing to expect from this system will be paying less taxes for any purchase we will be making. This will happen in much shorter time after this system comes into action. It will increase the amount of disposable income and will affect online income tax return positively.
• It will also minimize the chances of accumulating black money, which is a huge issue of our nation.
• Finally, from the economical aspect, introduction of this law will take a huge part in raising our national GDP growth. This law will help in collecting more tax which will build a stronger economy for the nation.