Question

Consider the following statements with respect to Goods and Service Tax (GST) :

1. GST in India will help in easing logistic sector issue and will promote ease of doing business.
2. HSN code,e-invoicing and GST-e way bill is implemented for GST revenue protection.

Which of the above statement/s is/are correct ?

• A. Both 1 and 2
• B. 2 only
• C. 1 only
• D. None of the above

Answer 1

The correct option is A Both 1 and 2

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Pre- GST, the complex tax structure and paperwork forced the transport industry to spend a lot of resources on tax compliance and deposit of interstate sales tax. Monitoring and collection of sales tax at interstate check posts led to major traffic congestion at these points, resulting in slower movement of freight and passenger, and consequently higher costs.This in effect will promote ease of doing business also.

Also w.e.f 1st April, 2021, it has been made mandatory for a GST taxpayer, having turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) on the invoices
issued for supplies of taxable goods and services.This with GST e way bill and GST e invoicing will help in checking any revenue leakage and therefore in protecting revenue.