Once you start earning, it is already a common knowledge that you will also be taxed based on your income. This is what we call direct tax and we already accepted that as part of the game. However, that is not the only kind of tax that we need to deal with since there are also indirect taxes that are levied on goods and services. For sure you already noticed this if you are the kind of consumer who always checks the receipt.
In India, their tax system is known to be really complicated both in the direct and indirect category. Most of the entrepreneurs are really burdened when it comes to their taxes and for them, the advent of GST or goods and services tax, they think they will not be able to breathe.
What is GST all about?
1. This new system is indeed something to look forward to for business owners as they won’t have to deal with different taxes anymore. Instead they only need to deal with a new subsumed set of taxes.
2. Everything will be overhauled. Taxes will be levied in a more reasonable manner. For essentials, taxes will be lower and higher for luxury items.
3. They will also make the most basic products exempted from taxes such as petroleum, electricity and liquor.
4. This new tax system was supposed to commence on the month of April. However, it is moved to the month of July for some reasons.
As mentioned above, the tax system in India is already complicated as it is and there are terms used that might be that easy to digest for a busy person. That said, if you think this is too much for your hectic schedule to handle, you can give India Filings a call as they have created the LEDGERS Accounting software which is designed for GST compliance requirements.