Earlier startups with an annual turnover of 5 lakh had to pay VAT which would be very complex for a business during the primary stages. But as GST has replaced VAT, businesses can set off the service tax on their sales.
Regulations and accountability
The pre-GST period witnessed a disorganized tax filing system. Presently, all taxes are paid online, and significant disputes in tax filing have been eliminated in introducing GST. This has resulted in industries becoming more accountable, and tax filing laws are better regulated than before.
Elimination of the cascading effect
The introduction of GST into the Indian tax system has eliminated several other taxes like service tax, central excise duty, customs duty and state-level value-added tax. Thus a single GST has made taxation easy.
Higher threshold benefits
Before GST was introduced, VAT or value-added tax was applicable for any business with an annual turnover of 20 lakhs. Services that saw a turnover of fewer than ten lakhs did not have to pay service taxes.