GSTN or Goods and sales tax number is a 15 digit alphanumeric code assigned to each MSMEs and SMEs, which have an annual turnover of 15 crores. The number is available for those who register through the official GST portal. At present Indian government offers a GST certificate that displays the unique GSTN for any business.
After getting the GST number, a business must maintain its gst invoice format. The GST certificate with GST number should be displayed in the primary business outlet like shops, factories, retail outlets, godown, etc. The business or business owner must display their GSTN on a spate board to ensure everyone gets to see the number.
There are different gst pros and cons. The GSTN has changed the whole scenario of the small and medium scale industries.
if you are interested to know about gst pros and cons in detail, here are some information for you-
The Pros of GST
The Simplified tax format
GST has allowed the business to go through a simplified tax procedure. Earlier, businesses had to submit different taxes to the government. This created additional challenges. Often, businesses had to opt for tax consultation services to ensure they paid every tax on time. But at present, the GST is the complete and universal tax for business folders. Hence, the procedure is pretty simple, and there are no problems with unpaid taxes. Small scale businesses also do not have to go for regular tax consultation services.
Mitigation of cascading effect
The GST network has allowed the government to create a channel to ensure the whole tax flows throughout society. Earlier, often, the business owners had to pay exclusive tax. Now consumers are included in the loop, Which means the tax is also collected from the consumers. Now, the businesses are only charged for the goods or the services they provide, and they do not need to pay any other tax.
Regulation of the unorganized sector
The government can regulate the unorganized sector or small business establishments like small shops, small factories. With GST, the government can now offer protection to SMEs and MSMEs. It can also ensure that these business dwellings are doing legal business without indulging in any shady habits.
The Cons of GSTN
Despite the benefits offered through GST, there are still some problems and limitations. Here are the cons of GST
The compliance issue is complicated
GST has created an added challenge for compliance and business compliance. For getting the GST number, businesses and enterprises must register in the state they operate in. Hence, SMEs and MSMEs have to go through difficult and complicated compliance procedures to get their GST certificate.
GST number should be included in the gst invoice format for any business. This alphanumerical number is a must for SMEs and MSMEs. GST has eased the tax network, but it still has many scopes for improvement to achieve its full potential.
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