GST For The Self Employed
GST has changed the taxation landscape in very real ways. Much has been said about the regime’s effect on the logistics sector as well as the e-commerce industry. However, the effect GST has had on the self employed has not been analysed enough. To elucidate, GST offers very tangible benefits for the salaried class in various ways. Here is an article that concentrates on these benefits that the salaried class can make use of as an important part of the current GST regime.
Lower Household Expenses
An important highlight of the GST regime is that while the expenses for films, restaurants etc are expected to go up while household items are projected to cost less. This has been hailed as a wonderful decision because GST replaces all the indirect taxes and brings everything under a single umbrella of taxation process. This has direct impact on the financial decisions the salaried class would make in this economy.
Legal Services Under GST
The most relevant example for the salaried class as far as services rendered is concerned, would basically involve legal counseling. This is because any business or individuals whose turnover is less than 20 lakhs, making use of the services of a legal firm is exempted for GST. This provides a lot of avenues for the salaried class to make use of legal services without worry of a hefty tax burden falling over them. The current regime is also similar for individuals or entities who are making use of the services of a senior advocate. This will have very important repercussions for the the salaried class looking to avail legal services.
It is common for employers to provide cab services for employees who work late shifts. This is an important motivation that solves the logistics issues of many individuals working for big and small conglomerates. It is possible that cab services availed by these companies are going to come directly under the new GST regime. This will be inconvenient for the salaried class because their employers might be forced to pay more to retain the cab services as part of the employment package offered to them.
Company Oriented Benefits
Organisations have a multitude of perks that are specific to employee performance. There are even referral bonuses that could benefit an employee positively at a financial level. The good news is that the new GST regime does not affect any of these benefits and employees can be sure to avail company perks as taxation would not be accommodated on to them at this point. This is good news for the salaried class in terms of the new GST regime.
The GST regime in this manner offers very tangible benefits for the salaried class. While there might be specific taxation penalties at some level, it is a very advantageous playing field for most people. The taxation regime as part of the GST looks like it will be profitable for the salaried individual in the long term.