Taxes are as old as the civilization. There are various taxes the government has to levy from time to time to meet its expenditure on various services offered to the public. To meet these expenses, the government had various taxes before a few years. However, due to a number of taxes, it was much difficult for the taxpayers to get the number and file the return and the experts were of the opinion to simplify the tax structure.
Considering the recommendations of such experts, the Government of India thought to imply the GST which has been considered as much success in many other countries. Following the same, in last year the GST was brought into effect, and now every business has to get a GST number and file return.
GST or The Goods and Service Tax, a value-added tax which is levied on domestic goods and services, is still a foggy affair for most of us. Many of us still have confusion regarding the particular tax as it is absolutely a new thing to the people of India. Most of the mass do not even know about the effects of GST on the Indian economy. The difficulty arises when the matter is about filing a GST returns file or a service tax returns file. However, GST does not convey the similar idea for a business person and a service person. There are many different effects of GST on different economical sectors of the country.
What are the effects of GST on business?
To know the GST return forms for business, you must know that GST or Gross Service Tax has different types of impacts on different business. It has been observed that the impact of taxes is much more on the manufacturing companies and multinational companies than on the importing companies. The importing companies reduce the costs of output by claiming tax credit while in the case of manufacturing companies, there are two different taxes levied on them – one by the state government and the another the another by the central government. However, not all the people are liable to pay taxes and file service tax return.
The service tax:
The service tax is levied on the people who offer various services to the public. They need to have a specific service tax number as per which they need to file the service tax returns in a prescribed format and submit the same before the due date as mentioned by the authorities. It can be any service which is notified by the Government of India and modified timely.
People under a certain category are bound to file service tax returns, but most of the people do not have any idea how to file tax, especially after the whole process became online and hired brokers to do it for them. Another confusion which often peeps in the mind of people is about service tax nil return filing. It means that whether the people who are not under the category of taxpayers need to file a nil tax.
