How does GST differs from other Tax Structure in India?

GST is an indirect tax for the entire nation that will make India a unified common market. Right from the manufacturer to the consumer, it’s a single tax on the supply of goods and services. Due to credits of input taxes paid at each stage being available in the following stage of value addition, GST which is now integrated with Tally software essentially is a tax only on value addition at each stage. The consumer will thus bear only the GST charged by the last dealer in the supply chain along with the set off benefits at all the earlier stages. With GST, all the geographical barriers for trading are set to be eliminated and will transform the entire nation to one common trading place.

How GST differs from present tax structure?

It’s important to understand the fundamentals of GST as it’s a dual concept tax system. Under this system, tax is managed, collected and shared by both the State and Centre governments, based on the nature of transaction. It certainly differs from the present tax structure and would make the life of people easy, once implemented. Let’s have a look at how GST will differ from the current tax structure:

• In the present tax structure there are separate laws for separate tax whereas in GST there would be only one such law as GST will include several taxes
• Currently there are separate rates. In this system there would be one CGST rate and a uniform rate of SGST across all states
• In current system there’s a cascading effect due to credit of CST and several taxes aren’t allowed. In GST, this situation won’t arise as CST concept is being eliminated with introduction of IGST
• Under current scenario, tax burden on tax payer is quite high. In GST, tax burden is expected to lessen since all taxes are integrated which make it possible the burden to be divided equally between manufacturing and services
• Due to the existence of cascading effect, some taxes become part of the cost. In GST, the cost burden is lessened as the mechanism eliminates such effect by offering credit
• At present, there’s no concurrent power to both Centre and State on same subject tax matter in the present tax system. In GST, both Centre and State are entrusted with the power to make law on GST due to the proposed Article 246A of the constitution
• Currently, tax compliance is complex due to the multiplicity of laws and their necessities to be followed. in GST, tax compliance would be easier as only one law including other taxes need to be followed
• Currently, tax is imposed at two stages in broad manner, i.e. when product moves out of factory and the other at retail outlet. GST needs to be imposed only at final destination of consumption and not at several points. This leads to transparency and corruption free tax administration.

GST is clearly a long term strategy and its integration with Tally App will now extend its reach to millions once introduced. Further it would lead to a higher output, more employment opportunities and economic inclusion. Its integration with Tally ERP 9’s latest release will help small and medium sized companies manage their business in an effective way.

How Businesses can be empowered with Tally’s Free Mobile App on GST?

Recently, Tally Solutions declared the launch of its GST mobile application so that the technology led law is easily adopted by the masses. Businesses and individuals would be the first to benefit from this specific app, as it will prove to be a rich source of information on Goods and Services Tax, and will further help them understand GST and its nuances. The interface of the app is quite user friendly which is designed in the way so that both types of users can handle it; the ones who are well equipped with the technology and the others who are just easing into the use of this technology in order to get better understanding and mechanization of their accounting practices. Brought in by Antraweb Technologies, Tally’s master partner for several years, Android and IOS users can download this free enterprise from their respective app stores.

 It has been Tally’s constant endeavour to equip traders and small businesses with appropriate information to train and prepare themselves for the Tax reform. Recently, the GSTN Network announced Tally to be a GST Suvidha Provider. Also, in order to educate and train the Trading community on GST, they have also collaborated with the Confederation of All India Traders (CAIT). Moreover, a blog has also been launched by Tally software to help with the provision of the most updated information on GST and its associated impact on verticals.

Commenting on the launch, Tally Solutions said that it’s proud of creating the simplest yet most advanced technology solutions for businesses over the past three decades. It further stated that after being part of several events with their partners in the eco-system across India, the company realised the need to develop a simple to use at the same time an all-inclusive tool to deliver this solution to the businesses that the company has invested in the Tally for GST App.

GST for Businesses

GST will bring comfort of starting a business by introducing uniform centralized registration process in India. Businesses will benefit with this change as they will get high exemption with an enhanced investment and lower tax burden, providing unified tax calculation without differentiating between product and services. GST will also play a major role in bringing down the fiscal deficit, enhance GDP and bring economic integration in India.

Going ahead, the process of paying tax will become simpler and transparent with GST, merging all taxes of various states into one, with no difference between sales and service. Furthermore, GST will lessen the logistic cost of the company producing non bulk goods, cutting down stocking cost of goods and services. Matching the Indian market, GST lets full tax credit for inputs and capital goods, i.e. both local and interstate taxes will be paid on procurement. Thus GST reform strives to enhance the growth of SME sector holistically.

In recent time Tally has conducted more than 170 events across India with several partners for making them aware and train small businesses on GST. The company serves more than a million businesses through their Tally ERP and Tally ERP 9 version and is constantly mobilising its manpower and systems to help ease of transition of their prevailing and additional users to GST regime