Governments receive the majority of their funding from taxes everywhere in the world. As to the Economic Survey 2022-2023, indirect taxes constitute a noteworthy revenue stream for both the Central and state governments of India. The Goods and Services Tax, or “GST,” has become a stable source of financing for state and federal governments alike, according to the previously stated poll. Gross GST receipts rose by 24.8% yearly between April and December of 2022, and this trend is expected to continue in the upcoming years.
New GST Regime
The new GST regime has created a single tax framework to free taxpayers from cascading taxes and revive the finance sector like never before. It also makes it more difficult for businesses to abide by terms and conditions that are often changing.
The Indian economy grew significantly in the 2nd Quarter of the current fiscal year, by 7.6%, according to the GDP estimates for the second quarter of FY 2023–24 (July–September 2023). By contrast, the prior fiscal year’s second quarter increase was only 6.2%. When all is said and done, this is really positive for the Indian economy.
Recent Amendments
The government intends to decrease the threshold for businesses to generate e-invoices for B2B transactions from Rs 5 crore to Rs 10 crore and deploy out the automated return scrutiny module for central tax inspectors to complete goods and service tax forms in a backend. With fewer MSMEs reporting false invoices and GST fraud, these changes are expected to boost the government’s overall GST revenue collections.
How the New GST Regime is Helping the Indian Economy
The Indian economy has benefited in these key areas from the implementation of the new GST regime.
- Systematic Tax System
- Increased Tax Compliance
- Thriving Economy
- Positive Impact on GDP
The Obstacles Faced by Small Businesses Under the New GST Regime
Despite a notable boost to the GDP and Indian economy, the new GST regime has the following shortcomings.
- Transformation Hiccups
- Higher Tax Burden for SMEs
- A Rise in Operational Costs
- Penalties for Non-compliance
Get The Best Indirect Tax Advisory Services with Sachin Gujar & Associate
Here’s where Sachin Gujar & Associates, a leading provider of indirect tax services in Pune, steps in to empower businesses.
Our comprehensive suite of top indirect tax services in Pune empowers businesses to navigate the complexities of the new GST regime with confidence. We offer:
- Impact of GST on the Business Model: We analyze your business model and advise on the optimal approach to maximize benefits under the GST regime.
- GST Compliances & Ongoing Support: Our team ensures you stay compliant with all filing deadlines and procedures, minimizing the risk of penalties.
- GST Audit Support: We provide expert guidance and representation during GST audits, protecting your business interests.
Sachin Gujar & Associates goes beyond just GST. Our team comprises accounting experts in Pune who can handle all your accounting needs, from bookkeeping and payroll to financial reporting and tax planning. We offer a holistic approach to ensure your business operates efficiently and profitably, maximizing financial success despite the complexities of the new GST regime.
