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A Simple Instance Of How The GST Regime Operates

A Simple Instance Of How The GST Regime Operates, The pre-GST regime of Indirect Taxation in India was characterized by a lot of red tape and complexity

Published

3 years ago

December 17, 2019

TwinzTech

A Simple Instance Of How The GST Regime Operates

The GST regime has been a game-changer in the sphere of Indirect Taxation in India. The pre-GST regime of Indirect Taxation in India was characterized by a lot of red tape and complexity.

There was a multitude of taxes and cesses which were in operation and had to be taken care of in a haphazard and disconnected manner by businesses. The actual rate of taxes on many products was almost impossible to determine for the average consumer, which was terrible for transparency.

How GST Regime Works

With the introduction of the GST system, all of those taxes were subsumed under the Goods and Services Tax, with a few exceptions. This drastically cut the number of taxes that businesses and consumers had to keep track of.

The Goods and Services Tax also was a game-changer in the field of Information Technology concerning taxation. Previously, there was almost no way for the Government to track down all of the transactions and invoices which were generated throughout business every day.

But, with the introduction of the GST, the entire system has now migrated online, so a GST invoice is now online and easily trackable by both the Government, as well as the business on the GST portal, which runs on the GSTN (Goods and Services Tax Network). This has increased transparency and compliance.

The GST is a comprehensive indirect tax affecting almost all goods and services in India, barring few items which have been kept outside the purview of the tax. It has several features which are illustrated below:

Table of Contents

1.Basic Overview:

The GST, as mentioned above, is a comprehensive tax, a single tax that has subsumed almost all of the taxes and cesses operating under the previous tax regime. GST was created to simplify procedures and create a transparent system of Indirect Taxation.

To this end, the GSTN Information Technology network was created to make the entire system online. Various forms need to be filled by businesses that are dependant on the type of business and turnover.

Unlike the pre-GST regime, a GST invoice generated in the course of business needs to be uploaded onto the GSTN network by both the supplier and the dealer who purchases the goods to be sold to the consumer. This ensures compliance.

2.Controlling Body:

How GST Regime Works

The GST system is controlled by a unified body called the GST Council. This body monitors the GST to ensure everything works smoothly. From time to time, the council publishes revisions to the tax structure when it feels that certain elements need to be revised. This is usually done in response to market conditions or anticipation of future market conditions.

3.GST Structure:

The GST is structured into slabs. There are four underlying slabs under the GST regime. On top of that, there is a fifth slab, which is essentially an exempted item slab, which includes items that have no GST attached to them.

The 4 major slabs are :5%, 12%, 18%, and 28%. Everyday items are placed in the lower slabs while sin goods and luxury items fall under the highest 28% slab. Some examples of items within the various slabs include vegetables, milk, honey, bread, etc. under the exempt category.

Items like apparel costing less than INR 1000, frozen vegetables, coffee, tea, etc. under the 5% category. Frozen meat, butter, cheese, ghee, etc. under the 12% category. Cakes, pasta, biscuits, mineral water, etc. under the 18% category. Things like pan masala, aerated drinks, aftershave, etc., fall under the highest 28% category.

This list keeps on changing, and for the latest information, official records are available with the current GST rates in effect.

4.Forms:

As briefly mentioned above, there are various forms under the GST system which need to be filled when filing returns. The dates in which those forms are due are also published on the official GST council website.

The current forms need to be filed range from GSTR-1, which details all outward supplies of goods and services, GSTR-2, which describes all of the inward supplies of products and services right through GSTR-9, which is the annual return to be filed by registered taxpayers. The GST council website has detailed FAQs regarding the filing of the forms.

The GST forms will be changing from April of 2020, and many of the ways will be done away with in favor of new forms, so businesses must keep track of the changes being announced by the GST council.

Conclusion:

The GST regime was created to ensure tax compliance as well as tax transparency in the Indian economy. By employing digital tax returns and online GST invoice processes, the Government has tried to create a simplified tax regime to replace the complicated old one.

There are many more aspects of GST that can be reviewed online on the official website as well as other websites containing updated information.

Business

What is a Customer Data Platform?

Published

2 months ago

January 27, 2023

TwinzTech

A customer Data Platform (CDP) is a new approach to centralizing your business’s promotional and sales information. Learn how companies use CDP to get ahead of the competition and effectively address their clients.

Table of Contents

1. Understanding a Customer Data Platform

A customer data platform stores and organizes customer information in one place, making it accessible to various customer care, sales, and marketing departments. The software can do its functions because it compiles information from multiple channels, such as your company’s social media profiles, website statistics, and live chat sessions.

You may best analyze your consumer’s needs and produce more targeted marketing campaigns with a customer data platform. Your marketing and sales activities will be more efficient, saving you time and resources. The advertising, sales and other teams that you manage will be able to make more informed decisions with the help of detailed prospective customers.

2. Reasons Why Businesses Should Implement a Customer Data Platform

A customer data platform is essential for modern businesses for many reasons.

The Elimination of Third-Party Cookies

Given the development of privacy rules and the shifting security expectations of consumers, marketing methods dependent on cookies set by third parties are becoming more unsustainable.

First-party consumer data, collected directly from your clientele, is the new gold standard. You may better serve your clients’ individual needs by creating a unified database of their information and using that information to send them tailored messages. By adjusting to the world of first-party cookies, your digital advertising will be able to draw on a far richer pool of data, including consumer interactions, choices, and transactions.

Development of Comprehensive Channels of Interaction

Advertising platforms like Google Ads and social media are becoming more popular among businesses. Direct mail campaigns are one kind of marketing communication, sales call to prospective clients, and in-person visits from clients. Whatever channel your consumers choose to engage with your company, it’s essential to provide them with a smooth, customized experience.

Omni-channel success begins with a detailed consumer profile fed by a customer data platform. If you do not have the proper marketing software, your clients may have a poor experience with you on several platforms. That is an issue since clients who are unclear on what they want cannot make a purchase.

Adopting a More Personalized Approach to Advertising is The Norm Now

Marketing Messages that are universally sent to all customers, both present and prospective, are no longer appropriate. Consider the impact of brand loyalty on advertising, for instance. One customer’s connection with your business is not the same as another’s, even if they have made many purchases from you.

With marketing technology, particularly a customer data platform, it is now feasible to personalize marketing communications in response to individual customers’ actions. The most excellent way to learn what a consumer wants is to tailor your marketing to their purchases, purchasing habits, and associated activities.

Upgrades That Will Help Your Business Thrive

3. Benefits of Customer Data Platform

Track the Most Productive Advertising Avenues

Knowing who you are selling to enables you to focus on the most effective methods of communication. Their use patterns may help you determine the best places to advertise to them, increasing your chances of success.

Make Better Products and Services Available

Understanding your clientele has applications beyond advertising and sales. Customers’ pain concerns are a goldmine of information for developing fresh offerings that appeal to your target market.

Upgrades Your Advertising Language

With a deeper understanding of your target demographic, you can craft more persuasive marketing communications. Knowing your potential market’s language, pain points desired solutions, and previous purchases allow you to communicate with them more effectively.

Accumulate All of Your Client Information in One Centralized Database

There are many different places where data on your customers may be found. A customer data platform consolidates data from several sources into a centralized repository, giving you a complete view of your clientele in one convenient location. There is no need to go between applications to compile data on your clientele.

4. Final Verdict

Consolidating real-time data sources, linking them to a customer profile, and making them instantly deployable in a campaign gives a CDP a great chance of winning over your present marketing team members. As the pace of your campaigns increases on a global scale, you may find yourself in the advantageous situation of improving the degree of customization and targeted advertising. This aligns with a decline in time spent on data cleansing and making ads.