Since the time it got implemented, GST has been one of the most sizzling topics which have been raging in the country. Right from the owners of established businesses to the small shopkeepers, the new indirect tax regime has been a cause of worry and relief for all in some way or the other. The reason for such high levels of interest can be attributed to the fact that GST will be impacting everyone. Whether a large scale business or a middle-class housewife, the newly implemented tax regime is certainly bringing radical changes in everyone’s lives.
When something is so widespread and critical, misconceptions can be easily formed. GST is no different as everyone holds a different understanding of the subject. Some are plagued to the fallacy that it is a one tax regime while others have fallen prey to the myth that finding a competent GST software is a difficult nut to crack. The authorities have been issuing details on a regular basis to calm the anxieties which are prevailing in the masses, courtesy the mistaken beliefs of people. This blog is an attempt to clear the clouds of doubt from the subject while busting the most common, yet prevalent, myths about GST.
- Myth #1: After the implementation of GST, it is now One Nation One Tax
As GST is subsuming numerous indirect taxes, people are believing that that now only one tax would be applicable throughout the nation and India has walked into the reign of a single tax regime. Though this was the original thought with which GST was conceptualized, but there are still three sectors which don’t fall under its realm. Petroleum products, alcohol and real estate aren’t a part of the new indirect tax regime. It is vital to note here that for the time being these sectors have been excluded from the ambit of GST, but they maybe included into it in the coming times. However, there is no official news pertaining to the same at the moment and as of now, they aren’t a part of GST.
- Myth #2: Small businesses are doomed to suffer
People who hold inadequate knowledge on the subject are believing that the new tax regime is bound to make the lives of small businesses difficult as they will have to hire a dedicated GST software and have a continuous internet connectivity in order to comply with it. However, this is far away from the truth as there is no mandate which makes it compulsory for small businesses to generate invoices by the digital means only. Manual billing is also an option under the new tax regime which permits small shopkeepers to maintain records physically as the need for internet would only arrive at the time of filing returns which can be easily done with the help of a cybercafé. Though a GST software isn’t mandatory, but having one will certainly help a business in more ways than one. With the assistance of this tool, businesses won’t have to seek a GST calculator to compute taxes every single time and it will act as a one-stop-solution for all compliance needs.
- Myth #3: Prices of products are bound to shoot up
Many individuals are assuming that the higher tax rates of 18 and 28 percent will increase the prices of all the products on which they are levied. As a result of this misconception, they are believing that the personal expenses will increase manifolds. The rates of GST might look extremely high, but the reason for this is that the entire breakage of tax is clearly visible to the consumers. In the pre-GST era, most of the taxes were already levied previously and weren’t showcased in the bill. But if the numerous taxes, which were prevalent in those times, are added then they will end up being more than the prices in today’s times.
GST is a new tax regime and just like any other political step, it will take some time to bring the positive results. Right from the mandate of the internet and GST software to the number of returns which need to be filed, there are all sorts of speculations which are doing rounds in the market pertaining to the possible implications which the new indirect tax regime might have on the economic condition of the nation.
One thing which needs to be understood over here is that all such hearsays are just assumptions as the actual impact of GST can only be witnessed once it is properly implemented for a sufficient period of time. Demystifying the numerous aspects of it is vital in order to attain an overall adequate understanding on the subject.