May 29, 2020
MahaGST: The Guide You’ve been looking for
The Goods and Services Tax (GST) was implemented in India in July 2017. The implementation of this tax structure witnessed the eradication of indirect and complicated taxes under the previous tax structure, such as the Value Added Tax (VAT). You will have to register for a GST number on the GST portal online if you are a supplier of goods or services. However, if you are a resident of Maharashtra, you can check out the MahaGST portal.
What is MahaGST?
MahaGST exists because Maharashtra declared a scheme to settle dues under numerous tax acts. Here are a few reasons MahaGST came into existence:
The MahaGST portal was put in place to simplify and accelerate GST online registrations in Maharashtra.
MahaGST offers a variety of features and services including, GST registrations online, acquiring a Goods and Services Tax Identification Number (GSTIN), a list of GST regulations, and policies that you have to follow, the latest GST news, updates, frequently asked questions, and so forth.
What services can you expect from the MahaGST Portal?
Here’s what you can expect from the MahaGST portal:
GST Online Registration
If you are a business operating under the GST tax regime, you will have to carry out an online GST registration and get a unique GSTIN. The MahaGST portal can help you register for the same and avail benefits. Here are a few:
- The primary benefit is that you will be legally recognized as an authentic supplier of goods and services after your GST registration.
- If you pay your taxes consistently and on time, you should have no problem claiming the Input Tax Credit (ITC) on your purchases.
- Finally, registering your business to a GSTIN helps you expand your market and boost your commerce.
Verify your GST number
As a supplier or vendor, you must verify your GST number. Many GST users have managed to get away with fake GST numbers and GST invoices temporarily. A GST number verification prevents you from becoming a victim of malpractice since the verification process involves checking for the authenticity of the suppliers and vendors. GST verification has reduced tax manipulation incidents, thereby ensuring a great deal of transparency in the tax system.
The Maharashtra Value Added Tax, 2002:
As mentioned earlier, various issues plagued the VAT structure, like charging double tax for certain goods and services. In other words, there was a cascading effect. Commodities would have tax attached to them before and after production, causing them to be priced significantly high.
The Value Added Tax Structure, however, did have a few advantages to its credit. Here are some of them:
- A significant decline in prices.
- Enhanced transparency
- Rationalization of the overall burden of tax
- A boost in the revenue
How has the Goods and Services Tax affected the Indian Economy?
Many would argue that the GST has its advantages and disadvantages. Here are some ways how GST implementation has affected the economy of the country:
Simplified Tax Code
The tax system that existed before the GST was incredibly complicated. It involved multiple taxes at the central and state levels. Examples of these include VAT and Excise duty tax. The inclusion of these taxes made the prices of goods and services significantly more expensive than their actual rates.
Double Taxation
The previous tax structure was infamous for its cascading effect on goods and services. Fortunately, GST’s implementation has nullified the double taxation effect of the previous tax regime. GST allows consumers to claim their ITC.
An Increase in the Government’s Tax Collection
If you are running an enormous tax structure, you will require a lot of resources. The implementation of GST has given rise to an increase in the government’s tax collection.
More Consumer Benefits
With the GST in place, consumers can expect more transparency. Under the previous regime, dining in a restaurant would have a bunch of taxes added to the bill. However, with the implementation of GST, you are liable to pay a mere 5% of the total bill as tax.
If you are new to GST and MahaGST, this should help shed some light on the benefits, features, and the role of MahaGST.