With GST (Goods & Services tax) coming in few months from now, it’s surely going to be a revolution that would change the dynamics of Indian tax system. This tax system would create a platform wherein India would be a one common market and the businesses would be at ease to function with big savings in the costs of logistics from firms across all industries. Some firms stand to gain a lot as the GST rate is considered to be lower than the current taxes paid by them, while others stand to lose a little as they think the GST rate will be on a higher scale than the prevailing tax rate.
There’s very little doubts in the minds of the industry experts that the GST will face lift the tax structure of India. Though as of now it’s tough to enumerate the GST effects on varied sectors, we can only know the real impact once the government starts levying it, i.e. from 01st July 2017. Though, the tax slab rates that the Indian Government has proposed of 5%, 12%, 18% & 28% is viewed to be quite exciting across varied sectors. Let’s have a look on some of the sectors on which GST will have an impact.
Several of the rapidly moving consumer goods companies such as HUL, ITC, P&G will benefit immensely by this tax structure of a GST rate less than or equalling to 18%. Also, much relies on the exemptions which are being retained along with the excise benefits. Benefits aren’t expected to be huge and will happen slowly as per several of the analysts.
With GST, India will be a single unified market wherein there will be free movement and supply of goods in every corner. Bringing in more efficiency in costs of the products, this tax system will also eradicate the spilling effect of taxes on customers.
Industry experts opine that GST will lead to the dropping of on road price of vehicles by 8%. There will be several key beneficiaries of GST including some really giant companies.
Integration with Tally ERP 9 would help Industries
Integrating GST with Tally ERP 9 would have a really positive impact on all industries and firms of every size. The latest news is that the GST ready version of Tally ERP is ready for rolling in some of the Indian States and Union Territories including Delhi, Maharashtra, Madhya Pradesh, Gujarat, Bihar, and Tamil Nadu. In Tally’s latest update, by using the GST feature, complete transparency in business transactions can be brought in. From 01 July 2017, a Tally user can file his/her GST tax returns from the software. Many see it as a really important feature due to its time and cost efficiency, if the user maintains the masters suitably. Many estimate that around 9 million businesses will be registered under GST, so Tally ERP is an apt accounting software to be integrated with GST that will help businesses function effectively thus customizing their resources to the optimum.
To Summarize, GST will eliminate the underrated prevailing tax systems and will uniformly help industries perform under one tax system thus preventing people from paying various taxes for a single product.