What are salient features of GST?

GST is value added tax in which items are taxable at every addition made. GST is multiple indirect taxes implicable after replacing various taxes. It is tax which is multi stage, destination-based. The main objective of the GST Law is tax cascauding is reduced, to implement simple and unified system and promote economic development. There are many features of the GST Law.

Knowing salient features of GST is important for applicability of the GST so that legal issue or penalties are avoided and compliance is ensured. Get help from Professional Utilities to solve any problem related to the GST.

Table of content

What is the GST Law?
Explain the salient features of GST in India
Benefit of the GST Law
Conclusion
Frequently Asked Question

What is the GST Law?

Goods and services is multi-stage tax in which tax is imposed on each stage. In GST at each every stage of the distribution or production value is added, tax liabilities are offset by the tax paid on the input and input tax credit can be claimed by the businesses.

Explain the salient features ofGST in India

There are many salient features of GST as mentioned below -

Input tax credit - Input Tax Credit is the key feature under which businesses are allowed to claim credit in the production of the good and services. The aim of introduction of the GST is to avoid tax on tax and cascading effect. There are certain condition of the ITC like timely filing of the return , valid tax invoice possession and payment by the supplier of the taxes.
GST System is dual system - In India GST Structure is dual systems in which GST is levied by both state government and central government. Structure of the GST comprises of the State Goods and Services Tax (SGST), the Integrated Goods and Services Tax (IGST) and Central Goods and Services Tax (CGST).
Assessment - Under GST Law taxes payable are assessed by the registered person himself and for each tax period return is furnished
One Tax, One Nation - Under GST one tax one nation is brought like across the country uniform tax rate is applied. With the help of these compliance cost is reduced, unified market is created and doing business with ease increase. Their are different rate in different state which is confusing and have comliance issues.
Composition scheme - Under GST Law for small dealers composition scheme is provided. With composition scheme compliances of the business reduced. On taxable turnover rate of GST is lower.
Threshold limit - Taxablility limit is 20 lakhs in the rest of the country and 10 lakhs in North Eastern States.
State are compensated - Compensation are paid for the revenue loss of any state, under GST Law for the period of the 5 years.
Taxes are based on destination- Consumption of the goods and services are destination based. In all inter state tansaction IGST is imposed.
GST Identification number or GSTIN - Common for both central GST and state GST PAN based TIN Number is issued to every dealer or registrants.
Anti - Profiteering Measure - Under GST Law brings price of the goods and servies down after implementation. Anti Profiteering measures are implemented so that end-user can use the benefit.
Elaborate Transistion - With new indirect tax regime or GST Law benefits all stakeholders like government , industry or the citizen. Boost the economy, cost of the goods and services are lower and product and services are made competitive globally.
Tax credit availability - Goods and Services or both are supplied in the course of the business in regards of which taxes are paid.

Objective of the GST Law

The objective of the GST law is to promote tax evasion reduction, economic growth and to provide many other benefits to the consumers and businesses as same. The many benefit of the GST Law are mentioned below -

Taxation Process are simplified
Easy and simple online process
Cascading effect on tax are reduced
Logistics productivity is enhanced
Through out the country uniform tax rate is implemented
Composition scheme
More foreign direct investment are attracted
Indirect tax management are made effecive

Advantage of the GST Law

There are many benefit of the GST in India as mentioned below -

Cascading effect is removed
Compliance is easy
Control on the leakage is better
Competitiveness improved
Efficiency of the revenue is higher
Adminstration is easy and simple
Structure and tax rate are uniform
Manufacturer and exporter are gained

Conclusion

The Goods and Services Tax (GST) Law is a comprehensive indirect tax law that governs the taxation of goods and services in India. There are are prominent features of the GST law in India like one nation one tax, Dual Structure, Integrated GST (IGST), Input Tax Credit (ITC), Electronic Filing and Compliance, Anti-Profiteering Measure, GST Council and etc.

Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

One Stop Corporate
Solution

PAN India
Services

Free Expert
Assistance

Google Verified
Business

Dedicated Support
Staff

Money-Back
Guarantee

Frequently Asked Questions

Define Goods and Services Tax?

The GST is a tax on products and services that are sold domestically for consumer use. Consumers pay the tax at the time of sale and the vendor passes it along to the government. It is included in the final price. Typically, a country will levy the GST at a single rate.

What does GST law scope?

Sale, transfer, exchange, barter, licence, rental, lease, and disposal are all forms of supply. Any of these transactions that a person engages in for compensation in the course or advancement of their business fall under the GST definition of a supply.