Monday, June 12, 2017

Overview of GST

Goods and Services Tax (GST) is an indirect throughout India to replace taxes levied by the central and state governments. It w... thumbnail 1 summary

6:53 AM

Goods and Services Tax (GST) is an indirect throughout India to replace taxes levied by the central and state governments. It was introduced as The Constitution Of India Act 2016(Amendments), following the passage of Constitution 122nd Amendment Bill. The GST is governed by GST Council and its Chairman is Union Finance Minister - Arun Jaitley. GST is expected to be applicable from 1 July 2017. The reform process in indirect tax regime of India was started in 1986 by Vishwanath Pratap Singh by introduction of Modified Value Added Tax (MODVAT)

Introduction of Goods and Services Tax (GST) is a step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax (GST). The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%, free movement of goods from one state to another without stopping at state borders for hours for payment of state tax or entry tax and reduction in paperwork to a large extent.

Goods and services tax (GST) will add various indirect taxes including central excise duty, service tax, additional customs duty, surcharge, state-level value added tax and Octroi.

The following taxes will becomes under by the GST:

· Central Excise Duty

· Service Tax

· Commercial Tax

· Value Added Tax (VAT)

· Food Tax

· Central Sales Tax (CST)

· Octroi

· Entertainment Tax

· Entry Tax

· Purchase Tax

· Luxury Tax