{"id":6123,"date":"2017-07-09T05:55:00","date_gmt":"2017-07-09T05:55:00","guid":{"rendered":"\/blog\/?p=6123"},"modified":"2025-02-03T15:41:42","modified_gmt":"2025-02-03T10:11:42","slug":"things-about-gst-you-should-know","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/things-about-gst-you-should-know\/","title":{"rendered":"Things About GST You Should Know"},"content":{"rendered":"\n

From 1st<\/sup> July 2017, almost all of India\u2019s indirect taxes will be subsumed under a single common tax; the Goods and Services Tax (GST). It will be a consumption-based tax levied on the manufacture, sale, and consumption of goods and services across the country.<\/p>\n\n\n\n

Know More<\/a><\/div>\n\n\n\n

Following\nare the seven things you should know about GST:<\/p>\n\n\n\n

1. Three major taxes<\/strong><\/p>\n\n\n\n

For\na simpler overview of the taxes, GST is categorized into three major taxes. These include the Central GST (CGST), State\nGST (GST), and Integrated GST (IGST). The primary objective is to bring\ntransparency to the suppliers and\nconsumers, as well as the taxpayers and government. <\/p>\n\n\n\n

2. Easier borrowing for businesses<\/strong><\/p>\n\n\n\n

Like technology start-ups aiming to capitalize on GST, financial start-ups will also witness huge gains. The country’s customer and small and medium enterprise (SME) commercial loan market is expected to reach $3 trillion in the next decade. This growth is primarily attributed towards the government\u2019s focus on digital inclusion. A large number of small businesses record transactions in books. However, GST will modify this and all taxation procedures will be online. After an effective transition towards the GST regime will make it easier for lenders to assess the creditworthiness of small businesses. This will enable financial institutions to provide timely and economical business loans<\/a> to help companies grow their ventures.<\/p>\n\n\n\n

3. Eliminate cascading tax effects<\/strong><\/p>\n\n\n\n

Under\nthe current tax regime, India levies a tax on taxes resulting in a cascading\neffect and increasing the burden on the end-users. GST will eliminate such an\neffect by combining different indirect taxes under a single rate. This will be\nbeneficial in reducing the final prices paid by consumers reducing their\nburden. <\/p>\n\n\n\n

4. Taxes replaced by GST<\/strong><\/p>\n\n\n\n

GST\nwill subsume approximately 14 types of indirect taxes. These include:<\/p>\n\n\n\n