Do you provide services or sell goods online? Are you aware of new tax GST in India and its overall impact on the economy? Well, you can feel the heat due to the impact of Goods & Service Tax (GST) on internet businesses too. GST is the single largest and biggest tax reform in India which replace all indirect taxes like sales tax, service tax, VAT, luxury tax and many other taxes.

Impact Of Goods & Service Tax (GST) On Internet Businesses From KrackBot Proteuz Technologies (proteuz.co.in)

 

GST is an indirect tax on the goods and services you provide to the end consumer in India. It is a one nation one tax reform which will make India one unified common market.

GST will help you to do business in India very easier by reducing compliance costs. It also simplified and automated the procedures for your firm registration, returns, refunds and tax payments. You can interact through the common online GSTN portal which will be the interface between you and the tax administration.

Impact Of Goods & Service Tax (GST) On Internet Businesses

All goods or services or both of them including digital products sold by you over the digital or electronic network will be under the radar of GST. Goods & Service Tax (GST) on internet businesses provides a stable environment favorable for growth and development.

Ease of Doing Online Businesses

Before GST, you need to face a lot of issues regarding the different procedures and fees in each state. GST allow you hassle-free registration which makes it easier for your online businesses to get started. It will bring uniformity in the process and centralized registration helps you starting a business and expanding in different States.

Tax Exemptions Limit Increased

GST increases the tax exemptions limit by up to 20 lakhs, thereby bringing respite for new online businesses. So, you don’t need to pay a single penny, if your online sales turnover is below 20 lakhs.

As per earlier tax structure, if your business crosses turnover of more than Rs five lakh has to get VAT registration. GST will make this limit higher, by up to Rs 10 lakh and also if your businesses with turnover between Rs 10 and 50 lakh will be taxed at a lower rate. This will bring respite from tax burdens to newly established businesses.

Simplification of Taxation

GST helps you by reducing the complexity of multiple tax system by simplifying the process of all taxes into a single tax. You spend a lot of time and energy to manage the various taxes at various points and makes the process very complex. GST will help you to simplify the process by integrating all taxes, making the process of paying the tax much better and simpler.

Logistic costs will reduce

Due to GST, border taxes will get diminished which is levied upon movement of goods from one state to another. Hence the costs involved in the delivery of goods will come down. GST reduces the cost competitiveness as everybody are directly brought under a single tax regime.

Robust GST SPV

GST is highly dependable on a robust IT system and so it is a special purpose vehicle (SPV). It aims to provide you a common portal for GST registration, return filing and e-payment facilities.

Tax Collection at Source

Any payment made by you as an online entrepreneur to a supplier would be subject to tax collected at source. So, if you buy goods or avail any services, then you are liable to pay tax.

Read: 5 Best Internet Businesses To Start With Low Investment


Goods & Service Tax (GST) on internet businesses may have great impact. In case you know any other effects on online businesses due to GST roll out, then kindly comments below.

Don’t forget to like and share this post on social media networks.

Summary
Impact Of Goods & Service Tax (GST) On Internet Businesses
Article Name
Impact Of Goods & Service Tax (GST) On Internet Businesses
Description
Goods & Service Tax (GST) is a one nation one tax reform which will make India one unified common market which replace all indirect taxes into one.
Author
Publisher Name
KrackBot - Proteuz Technologies
Publisher Logo
Impact Of Goods & Service Tax (GST) On Internet Businesses

Leave a Reply

Your email address will not be published. Required fields are marked *