2017 witnessed the introduction of the Goods and Services Tax (GST) in India. This introduction resulted in eradicating the cascading effect of many indirect taxes like the Value Added Tax (VAT), Service Tax, Entertainment Tax. Etc that were prevalent under the old tax regime. If you are a business owner and new to GST in India, you will have to complete the GST registration process and obtain a GST number on the GST portal. If you are based out of Maharashtra, you can look up the MahaGST portal.
What is MahaGST?
MahaGST came into existence since Maharashtra decided to introduce a scheme to settle many dues under a variety of tax acts. MahaGST exists for the following reasons:
- Firstly, the MahaGST portal was introduced to simplify and catalyze GST registrations in Maharashtra.
- Secondly, it offers a wide range of features and services like provisions to obtain a Goods and Services Tax Identification Number (GSTIN), GST registrations online, GST rules, GST latest news, updates, FAQs, and more.
MahaGST governs the following tax acts:
- Maharashtra Value Added Tax Act, 2002
- Professional Tax Act, 1975
- Central Sales Tax Act, 1956
- Maharashtra Value Added Tax Act, 1962
Maharashtra Value Added Tax, 2002:
Under the VAT structure, there was a double tax for specific categories of goods and services. Another way of saying it is there existed a cascading effect on these goods and services. Given how these goods and services were taxed before and after production, the overall price would be unreasonably high. However, the advent of GST has remedied these issues.
Profession Tax Act, 1975:
The government introduced the Employment Guarantee Scheme to help the poor. This scheme promised to cover payments for rural laborers to compensate for the amount of work put in.
How can the MahaGST portal help you?
MahaGST has two primary functions. Here they are:
GST Registration Process
It is compulsory for a provider of goods and services to complete the GST registration process online and acquire a unique Goods and Services Tax Identification Number (GSTIN). Here are a few benefits of getting a GSTIN:
- Firstly, you should have no problem getting recognized as a credible provider of goods and services once you have a GSTIN post GST registration.
- Paying your taxes on time without hassle will allow you to claim your Input Tax Credit (ITC). Make sure you submit the correct GSTIN before you claim your ITC.
- If you are a provider of goods and services, you will want to reach out to the market more effectively, which means you will want to tap into E-commerce and make supplies to other states. Both of these can be done once you get a GSTIN.
GST Number Verification
Now that you’ve recognized the importance of a GST number, you need to make sure you carry out a GST number verification. This is also true when you are doing business with another company. Be sure to verify that they are a legit business before you go ahead with them. Having a GSTIN in place prevents you from tax evasion or any other malpractice. In other words, you can expect a great deal of transparency under this tax regime.
The Effect of GST on the Indian Economy
Here are a few ways in which the advent of GST has affected the Indian economy:
More Benefits for Consumers
As mentioned earlier, GST makes way for higher transparency. Under the VAT regime, paying for a meal at a restaurant would be a painstaking task given the number of taxes attached to the bill. However, today, you are liable to pay a flat 5% of the total bill.
Simplified Tax Code
The VAT structure was incredibly complex, both in terms of tax calculation and payments. There were multiple taxes levied at different levels in different states. VAT and Excise duty tax are prime examples. The imposition of these taxes before and after the production of select goods and services would render them extremely expensive.
There you have it, an easy-to-under gist of MahaGST and everything it has to offer. If you are a resident of Maharashtra and own a business, log on to the MahaGST portal and register without further ado.
