One year ago, the Government took historical move by implementing “GST” Act. There were many changes done by the Government in the journey of GST. It is the biggest move taken by the Government & subsumed many acts prevailing in the system like VAT, Service Tax, Excise Act etc. As compared to previous acts, GST is said to be the most simplified law.

Every coin has two sides. Such quote is applicable to GST act also. Even though there are some issues regarding GST system but it has some positive effect also.

In this article, we have mainly focused on GST benefit and its overall journey of one year.

1.  Registration Procedure

Before GST, taxpayer is required to register in different laws according to limit defined in the act. But in GST tax regime, taxpayer will get only one number i.e. GST no. within a week only by uploading 3-4 documents online, without visiting the office physically.

2. Various Definitions

Before GST act, there is various definitions in each laws, like in excise goods, definition is different than VAT Act, and the taxpayers required to remember each definition. But in the GST regime, simple definitions are there. Also, Government made clear distinction of goods or services, and the category under which it falls. Government also issued various other definitions in a very simplified manner.

3.  Provisions/ Rules

In the GST regime, Government issued various circular and notifications in a very simplified manner. If there were any complexities or multiple interpretation, then the Government also issued “FAQs” to solve the problem.

4.  Return Filing Procedures

In the initial stage of filing returns, some problems were arising like the site was not supported due to infrastructure failures but now-a-days, the Government has made the filing very simple and has also put some auto populate option in GSTR-3B.

5.  Penal Provision

In the GST Act, there are harsh and stringent penalties. It is not very easy to break the provisions of laws.

6.  Input Tax Credit

In the earlier laws, taxpayer is unable to take credit of Central Sales Tax (CST) which leads to increase in the cost of purchase. Small taxpayers, who are covered under the Excise Act, are unable to take credit of excise.

7.  Uniformity in Rates

In the pre GST era, there were various rates in different states especially in the VAT Act. Therefore, the chance of tax evasion was very high. But in the GST Act, rates are uniform all over the country. Hence, there are minimal chances for tax evasion.

8. Grievance Mechanism

Introduction of the grievance system in the GST act was a very good initiative taken by the Government. There are toll free numbers available on the portal and email ids using which the taxpayer can solve his problem easily. I know taxpayers are still facing some issues and are not happy with this law. But if everyone sees from long term perspective, we shall find positive results. If we take GST positively and accept the changes done by the Government, then we will realize that there are more benefits than disadvantages for the economy.