1. Quick taxation: A start-up spends a lot of time and resources at different stages to handle different taxes. The method gets very difficult by complying with various laws in different states. GST simplifies the process by combining all taxes and simplifies the tax collection process
2. Simple to register:
Every new corporation wants a VAT license from the department of sales tax. A organization working in several Member States faces a number of challenges with each State’s varying processes and fees. GST will introduce process and unified registration uniformity which simplifies start-up and expansion in various countries much.
Any corporation with revenue above 5 lakh needs to get VAT registration and pay VAT according to the new indirect tax system. GST will raise this cap to 10 lakh and will enforce lower prices on firms with a revenue of between Rs 10 and 50 lakh. This will make new start-ups and small companies comfortable.
- Sales and services companies: businesses such as hotels, where all come under sales and service taxes, must measure the VAT and service tax separately on each of these items. This makes it really difficult to calculate. GST will not discriminate between sales and services and will also carry out overall tax estimation.
- Save time and money from logistics: Due to minor border charges and monitor postal problems, many transport vehicles are retarded during travel through States. Interstate movement will be quicker and will take less time to remove these fees. The entire Indian market is opened up to farmers as intergovernmental supply is neutral. The costs of holding elevated stocks, since the flow of commodities is uninterrupted, would therefore be reduced. According to a CRISIL report, the logistical costs of non-bulk goods manufacturing industries (including all goods, aside from the main bulk goods, transported by railway services – coal, iron ore, cement, steel, food crops, and fertilizer) can be decreased by as much as 20%.