What is GST?
GST is levied at every stage of the manufacturing and selling of goods and services in India. This duty is payable when the goods and services are consumed. Join FITA Academy‘s GST Course in Chennai and learn from industry experts.
Types of GST:
GST is divided into three subcategories:
CGST:
The Central Government collects CGST on interstate sales of goods and services.
SGST:
The State Government collects SGST on intrastate sales.
IGST:
IGST is collected When goods and services are supplied from one state to another. The collected taxes are split equally between the state and federal governments.
What is the Impact of GST on Our Economy?
Here, we shall discuss the effect of GST on Indian economy. This blog gives a complete understanding of GST and how GST is implemented.
Simple Tax Structure:
Our country’s taxation system has been simplified as GST. It is a single taxation system, making calculation easier. This tax informs the buyer of the amount paid as tax when purchasing specific products. It is crucial when considering GST and the GDP impact.
More Funds for Production:
The reduction in the total taxable amount is another effect of GST on the Indian economy. The saved fund can be reinvested into the production cycle to boost output. GST Classes in Chennai provide real-time projects at an affordable price.
Support for Small and Medium Enterprises:
The amount of GST depends on the size of your organization and your annual turnover, provided you have registered under GST’s composition scheme. Businesses with an annual turnover of 50 lakhs must pay 6% GST, while companies with a yearly turnover of 1.5 crores must pay 1% GST.
Increased Volume of Export:
Customs duty on exporting goods has been reduced in light of GST and its impact on the Indian economy. As a result, production units save money when producing and shipping goods. This two-way savings has stimulated many manufacturing units to export their goods, increasing export volume.
Enhanced Operations Throughout India:
Transporting goods across India has become easier with a unified taxation system, boosting operations.
No More Cascading Effect:
GST combines state and central government taxes. It eliminates cascading effect, lowering the burden on both the buyer and the seller.
Conclusion:
As we discussed above, What is the Impact of GST on Our Economy?. So to have a profound understanding of GST, you can join GST Training in Chennai and equip yourself with the core concepts, features, benefits and types of GST.
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