There are many benefits of GST on the country over sales tax. Firstly, GST eliminates the cascading effect of taxes. A cascading tax or cascading tax is a turnover tax linked to each stage of the supply chain, without any deduction for tax paid at previous stages. Such taxes are distorting as they constitute a false motivating force for vertical combination. Cascading GST is a completely aberrant expenditure that was intended to bring indirect taxation under one umbrella. Even more critically, it will eliminate the trickle-down effect of taxes that was previously evident. The cascading tax effect can best be described as “tax upon tax”. Give us the opportunity to adopt this model to understand what the tax on taxes is: say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayGST increases the threshold for registration. VAT or value added tax is a consumption tax levied on items at each point of sale where value has been added, starting from raw materials to the final retail purchase. Previously, in the VAT structure, any business with a turnover of more than Rs 5 lakh (in many states) was at risk of paying VAT. If it's not too much trouble, please note that this cutoff varies from state to state. Similarly, service tax has been waived for service providers with a turnover of less than Rs 10 lakh. Under the GST regime, however, this threshold has been extended to Rs 20 lakh, which exempts several small traders and service providers. There are many disadvantages of nationwide GST compared to sales tax. Firstly, GST increases costs due to the purchase of software. Businesses need to upgrade their current accounting or ERP programming to one that is GST compliant or purchase GST programming so they can sustain their business. Be that as it may, both alternatives require greater expenses for purchasing programming and preparing representatives for competent use of the new billing programming. Clear Tax is the first company in India to have launched a ready-to-use GST programming called Clear Tax GST programming. The product is now available free of charge to SMEs, helping them transition to GST easily. It has really eased the torment of the general populace in so many ways. Secondly, SMEs (small and medium-sized enterprises) will have a higher tax burden. Smaller organisations, particularly in the manufacturing sector, will face challenges under the GST. Earlier, only businesses whose turnover exceeded Rs 1.5 crore had to pay excise duty. In any case, now any company whose turnover exceeds Rs 20 lakh would have to pay GST. Be that as it may, SMEs with a turnover up to Rs 75 lakh can opt for a composition scheme and pay just 1% turnover tax in lieu of GST and appreciate lesser compliances. The problem, however, is that these businesses will not have the ability to secure any purchase tax credits. The choice between higher taxes or the composition regime (and therefore no input tax credit) will be challenging for some SMEs. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom EssayConclusionIn my opinion, GST is a good economic structure. GST will make our economy tougher and is a great step taken by the government towards the betterment of the country. Despite the fact that the GST is imperfect and under debate, it will most likely help support our economy, but it is a.