Heads | Current Regime | GST Regime |
Input Tax Credit | There was a non- availability of a procedure to avail of the input tax credit under this regime.
The portal used to charge the suppliers for renderings its services to them in the form of service tax and thus the suppliers can’t benefit from the input tax credit on it and was counted as cost. | There is a seamless availability of Input tax credit for the sellers operating via E-Commerce platform.
The credit is available on all the inputs used in or for expanding the business.
This benefits the sellers a now the inputs are no more adding to their costs but giving them an option to operate on less costs. |
Uniformity in taxes | Due to state-wise taxation rules, the sellers were subject to pay multiple, and different taxes on the same product again and again due to different rates at each state.
This caused a lot of ambiguity, chaos and exploitation of suppliers. | With the advent of GST, this chaos meets its end. The policy of ‘One Nation, One Tax’ has made it easier for the suppliers to reach greater masses.
GST has brought about uniformity in the taxation policy and tax.
There is now a single tax for offline as well as online sellers in the whole nation. |
Compulsory Registration under GST Registration Online | Earlier it wasn’t mandatory or all the suppliers to get themselves registered on the online portal as their turnovers didn’t exceed the threshold limit.
This enabled them to sell their products at a lower price than the registered sellers to the general public and the non- maintenance of their account records, GST Return Filing, and invoices. | Under this, every seller who is selling via the E-commerce platform or availing services in any form has to get registered irrespective of the threshold limit.
It is binding on them irrespective of how low their turnovers are.
This may seem unfair to the online sellers as the sellers operating through physical stores are not subject to GST Registration Online until they cross the threshold limit and are also eligible for the composition scheme if their turn is below INR 50 lakh.
Also the suppliers owning their own portal need not to register until they cross the threshold limit.
All this leads a supplier to maintain their accounts, pay tax on time and timely GST Return Filing. |
Composition Tax Payer | In current regime the sellers could become a composition taxpayer with an annual turnover of less than INR 50 Lakh.
They only had to pay a small percentage of their income in the form tax and can file the GST return on a quarterly basis or according to the time period stipulated by their respective state. | The sellers can avail of the composition scheme and hence cannot become composition taxpayer even if their turnover is below the threshold limit (INR 50 Lakh).
The compliance activities and costs have increased under GST due to monthly GST Return Filing and maintaining of records in right order. |
