What are the limitations of GST in India?
Disadvantages of GST in India SMEs with a total income of Rs. 75 lakh could avail the composition scheme, pay a mere 1\% tax on turnover and abide by less compliances; however, the trade-off is that they cannot claim credit for input tax.
What is meant by GST explain about its features and limitations?
GST is a transparent tax and also reduces the number of indirect taxes. GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. Benefit people as prices will come down which in turn will help companies as consumption will increase.
What are merits and demerits of GST?
Eliminates multiple layers of taxation: The primary benefit of GST Registration is that it integrates different tax structures like Sales Tax, Central Excise, Special Additional Duty of Customs, Service Tax, Luxury Tax, etc. into a unified tax. It abolishes multiple layers of tax levied on goods and services.
What is limit for composition scheme?
Who can opt for Composition Scheme. A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.
What is difference between GST regular and composition?
Under the regular GST, the supply can be to both inter and intra state. Under the composite GST, the supply can be only intra state. In the regular GST scheme, tax collection is permitted at the prescribed rates. In the composite GST scheme, tax collection is not permitted.
How has GST ruined the economy?
“GST is not a tax system, it is an attack on India’s poor. It is an attack on small shopkeepers, small and medium businesses, farmers and labourers. It has destroyed a lot – lakhs of small businesses, crores of jobs and the future of youth and the financial health of states. GST means economic devastation.”