Advantages

Removes Cascading effect

Cascading effect refers to tax on tax, it occurs when a god is taxed on every stage of its production, until it is sold to the final consumer. But this GST removes this cascading effect and reduces the burden of multiple taxes on the final consumer.

Increased exemption limit

Exemption limit has been increased for small traders or service providers where as if you consider earlier indirect tax structure, various indirect taxes had different sales turnover limits for registrations. Like, the turnover limits for registration in GST are higher but it exempts the small traders and service providers from paying GST.

Composition Scheme

Small business also gets the benefit of composition scheme which is introduced under GST. Small business owners registered under the composition scheme are required to pay a fixed percentage of tax on their turnover.

Less compliances

Due to GST, there is reduction in number of tax compliances related to tax returns. Earlier the business registered for various indirect taxes had to bear for multiple compliances.

Online process

Registrations and filing returns under GST can be easily done through online process. So there is no problem for a business owner that he had to get himself register separately for various indirect taxes.

Disadvantages

Tax burden on small and medium enterprises

Earlier the small and medium enterprises had to pay excise duty when the turnover exceeded Rs. 1.5 crore every financial year but under GST, businesses whose turnover exceeds Rs 40 lakhs are liable to pay GST.

More Compliances

The GST framework mandates that companies are required to register in all states they operate in.

Petroleum products not fall under GST slab

Petrol and petroleum products are not included under the GST slabs till now. States levy their taxes for this sector.

Training to Tax officers

There is need for providing adequate training to the government officers for practical usage and implementation of such system as the GST system is based on information technology.

Steps to file Monthly Return

• Firstly you need to visit the GST portal (www.gst.gov.in).
• A 15-digit GST identification number will be issued to you on the basis of your state code and PAN number.
• Next step is to file outward return, inward return, and cumulative monthly return online. If any errors occur, you have the option to correct it and refile the returns.
• In GSTR-1 file the outward supply returns form through the information section at the GST Common Portal (GSTN) on or before 10th of the following month.
• Now supplier needs to furnish details of outward supplies and will be made available in GSTR-2A to the recipient.
• Recipient has to verify, validate, and modify the details of outward supplies, and also file details of credit or debit notes.
• Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR-2 form.
• The supplier can either accept or reject the modifications of the details of inward supplies made available by the recipient in GSTR-1A.