Im­pact of GST on new busi­nesses

Apparel - - Market Watch -

This re­form would har­monise the tax base and laws and ad­min­is­tra­tion pro­ce­dures gov­ern­ing it. This, in turn, would min­imise the in­ter-state com­pe­ti­tion which is detri­men­tal to the na­tion’s de­vel­op­ment. The GST bill would en­sure that the in­di­rect taxes in­clu­sive of the ser­vice tax and ex­cise duty cur­rently levied by the State and Cen­tre would be on the ba­sis of pro­duc­tion and not on con­sump­tion of the goods or ser­vice. By this bill, the govern­ment has min­imised the in­cen­tives

This is def­i­nitely a pos­i­tive de­vel­op­ment for en­trepreneurs plan­ning to start a new busi­ness ven­ture. For a busi­ness hav­ing two or more branches in dif­fer­ent states, the process be­comes more dif­fi­cult and cum­ber­some due to the di­ver­sity in pro­ce­dures and charges in each state. GST would bring about a cen­tralised pro­ce­dure and regis­tra­tion which would ap­ply to all the states. This would not only make regis­tra­tion of new busi­ness easy but also make busi­ness ex­pan­sion has­sle-free and for­malised.

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