GST has made the process of doing business complicated Comment

• The introduction of Goods and Services Tax (GST) has brought about significant changes in the process of doing business.
• One major complexity arises from the multiple tax rates and classifications under GST. Previously, there was a single tax rate, but now businesses have to classify their goods and services into different tax brackets, which can be time-consuming and confusing.
• Another complication is the increased compliance requirements. Businesses have to file monthly or quarterly GST returns, which include providing detailed invoices and maintaining proper records. This has increased the administrative burden for businesses, especially for small and medium enterprises with limited resources.
• Additionally, GST has led to changes in pricing strategies. Businesses need to adjust their prices to include the applicable tax rate, which may vary across different states. This requires constant monitoring and updating of prices, adding to the complexity of the operation.
• Furthermore, businesses now need to be more cautious about the input tax credit (ITC) mechanism. They have to ensure that their suppliers are also complying with GST regulations and providing valid invoices for claiming ITC. This adds an additional layer of complexity to the procurement process.

Overall, while GST aims to streamline taxation and eliminate multiple cascading taxes, it has also brought about certain complexities that businesses need to navigate efficiently.