In simple words, ‘return’ means a statement of information to be submitted by the tax payer to the tax authorities, at regular intervals, i.e. before the due date of each return. Similarly, GST return contains all the GST related information of the tax payer, like total purchases, sales, tax liability payable, tax liability adjusted with available input tax credit, input tax credit available to be carried forward, Interest and late fee payable for delay in filing of return and other such information of the tax payer.
GST is a huge step in the history of tax reforms to create confidence and an atmosphere of investment, manufacturing and growth.
GST is portrayed to provide the requisite impetus to business sector and at the same time reducing the price burden due to regressive taxes on the consumers. The most salient feature of the GST is that it would remove the multiple taxes levied on products both by the state and central government by virtue of taxes being in the concurrent list. GST seeks to replace these taxes which are primarily regressive in nature, due to which a cascading effect is created and as a result the ordinary consumer pays around 20-30% extra. Another major problem with the previous tax regime was that there were constant disputes about whether certain items come in the category of goods or services and this would be addressed by GST as it explicitly provides a rate card to the same effect. Furthermore subsumation of these taxes into GST would also provide an effective and efficient flow of tax credit both at the Centre and State level. GST is being implemented in such a way that the revenues of States and their Capital and Revenue Expenditure on that account are not hampered.
GST has numerous benefits to the producer like input tax credit, easy returns, reduction in costs and prices of locally manufactured goods which would in turn spur the aggregate demand and create a multiplier effect to boost the economy. Compliances required under GST is going to aid the government immensely with the elements of GSTIN, requisites of GST like PAN Card, the documents to be submitted for registration along with CGST and SGST a dual monitoring system would be in place to prevent tax evasion and promote fair competition.
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