GST has many advantages for the country compared to sales tax. First, GST eliminates the cascading effect of tax. A cascade tax or cascade tax is a turnover tax that is connected to each stage of the supply chain, without any deduction for the tax paid at previous stages. Such taxes are wrong in that they constitute a false motivating force for vertical combination. The cascading GST is a completely aberrant expenditure which was intended to bring together indirect taxation under one roof. Even more crucially, this will eliminate the cascading effect of taxation that was previously evident. The cascading tax effect can be best represented by the formula “tax on tax.” Give us a chance to use this model to understand what tax on tax is: say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay. GST increases the registration threshold. VAT or Value Added Tax is a consumption tax levied on items at every point of sale where value has been added, 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 likely to pay VAT. If it's not too complicated, know that this cutoff varies depending on the state. Similarly, service tax was exempted for service providers whose turnover did not reach Rs 10 lakh. Anyway, under the GST regime, this threshold has been widened to Rs 20 lakh, which exempts many small traders and service providers. GST has many disadvantages in the country compared to sales tax. First, GST increases costs due to purchasing software. Businesses must either update their current accounting or ERP programming to GST compatible programming or purchase GST programming in order to support their business. Be that as it may, both alternatives result in increased expenses for purchasing programs and preparing representatives for competent use of the new billing program. Clear Tax is the first company in India to have launched a ready-to-use GST program called Clear Tax GST Programming. The product is now available free of charge to SMEs, helping them easily progress towards GST. This really made it easier to torment the general population in many ways. Second, SMEs (small and medium-sized enterprises) will have a higher tax burden. Smaller organizations, especially in the manufacturing sector, will face challenges related to GST. Earlier, only companies 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. Anyway, SMEs with turnover up to Rs 75 lakh can opt for composition scheme and pay only 1% turnover tax instead of GST and enjoy lesser compliances . The problem, however, is that these companies will then not have the capacity to secure any input tax credit. The choice between higher taxes or the composition system (and therefore no input tax credit) will be a difficult choice for some SMEs. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get a personalized essayConclusionTo my.