By rolling out the Goods and Services Tax system, India has become a partner of the global reach of indirect taxes. GST exists in over 161 countries of the world. The reason the implementation procedure took so long beginning from the appointment of the Indirect Taxation Enquiry Committee in 1977 is because of the Federal system of our country. Every negotiation has to be run through the state governments, for them to arrive at a consensus.
With GST being implemented in full force the cascading effect of the unnecessarily complex tax system has faded out. The excises at the different stages along with the absence of any input credit facility, led to a high cost of manufacturing in India. After the implementation of GST, the Central GST, State and Interstate GST and Integrated GST make sure that instead of manufacturing, supply is emphasized upon.
What exactly is GST Return
Tax administrative authorities are in charge of the GST Return where return is a document containing the income details of a tax payer and he has to file it with them. The registered dealer has to file returns that include Input Tax Credit, Output GST, Purchases and sales. In a year a business has to file 37 total returns, where there is one annual return and three monthly returns. If the GST return isn’t filed on time, a late fee is charged. It was 100 rupees a day and has now reduced. To avoid the growing expenditure and stress it’s always advisable to get someone to do the filing for you if you can afford it. It takes a load of your chest and you can concentrate on future endeavours.
The GST Network is the IT support system of the GST procedure in India and helps the population in e filing gst return. The test run for it was conducted in July 2017 and is now working quite functionally. There were complaints of the tax payers facing issues in meeting the complete deadlines for submit tax return due to technical glitches in the network, however the reason has come out. This is because tax payers file their returns at the last moment giving an unbearable load to the site. It is important that this process is taken care of as soon as possible and not keep it pending for the very last minute.
GSTN is a smart way of keeping the interaction between the officers and tax payers to a negligible level because that helps in controlling bribery and corruption. There was an initial fear that GST would lead to high levels of inflation but the GST rates in India were not that high to cause inflation. Tax evasion has become extremely difficult after the constant surveillance at the state and central level.
It is important to understand that filing taxes is our duty to our country. The economic freedom of India is at a low because of widespread corruption in India, hence we must contribute to the wellness of the country instead of bringing it down.