In India there are several indirect taxes which are taxed by separate authorities have no mechanism to check unreported income, as tax laws such as Excise, VAT ,service tax,etc.but however after GST the goods and services will be taxed from the wholesaler to the customer level even a penny will be traced.
If a wholesaler sell goods to a customer. it is workable to wipe this purchase off the books in today’s tax control .However ,under the GST regime ,an itemized trail of transactions shall be available on a actual time basis, due to which back dated transactions and entries to circumvent taxes will be further restricted. All the returns of the taxpayers shall be filed online in the GST regime. They would also get all their refunds, orders etc. online. This will reduce the interface between the assesses and officers, which would reduce corruption.
This link continues until the last link in the supply chain is purchased by a consumer or goods or services. If a seller fails to upload his / her sales, the buyer will stop buying tax from the seller who does not announce his sales, since the buyer will lose the tax credit. It will be difficult for some officials to manage and alerts. The possibilities of grafting in GST are doubled. The GST framework provides for central GST and state GST. Therefore, the central and state agencies will share power to the moderators. Then, there is an in-state GST, which will be collected for central and state transactions of goods and services. VIEW MORE : GST Returns Filing
The tax will save them from the triple tax they are paying now and will reduce the cost of constructions. For home loan, a fixed GST of 18% is applicable, which is more than the current VAT of 5% for the current construction materials and the 3.5% service tax. With a late payment, 18% per annum should be paid. It should calculate taxes payable to tax payers. There will be a period of time from the next date of payment.