Merits And Demerits Of GST Tax Rate in India
The Goods and Services Tax (GST) made the original taxation system of
India obsolete from 1st July 2017. GST’s primary
objective of GST was to eliminate all the several taxes and bring
each one of them under a single umbrella.
The top advantages and disadvantages
of GST in India faced a mix of mass criticism and praise from the
general public.
One of the advantages of GST was the high exemption limit. Businesses
with an annual turnover of less than Rs. 40 Lakh and Rs. 20 Lakh in
special category states were exempt from tax.
The Goods & Services Tax also bought the voluntary composition
scheme which entities earning less than Rs. 1.5 Crore can enrol in.
This scheme enables particular businesses to pay GST at a flat rate.
Abolishing commercial tax was another advantage of Goods and Services
Tax. Now, goods can move within states without paying any additional
duty.
The introduction of GSTN was another positive aspect that made it
simpler for companies to file taxes and register themselves.
Lastly, GST
rates played a significant role in curbing corruption, especially
in the unregulated areas of sectors like real estate and textile.
One of the disadvantages of Goods & Services Tax was that
businesses with a turnover of more than Rs. 1.5 Crore now had to file
taxes monthly.
Another disadvantage included no tax holidays. The Government has not
yet clarified tax holidays previously present in the old tax regime.
Lastly, the Government imposed GST on various products that
previously did not attract tax. These items include motorised
wheelchair, hearing aid, braille paper, and braille writers.
Additional read: What
Are The Advantages And Disadvantages Of Goods And Services Tax (GST)
in India?
March 27th, 2019