Goods and Services Tax
Goods and Services Tax
Goods and Service Tax (GST)
The Goods and Service Tax Act introduced on 1st July 2017 is the single biggest tax reform in the independent India to ease compliance and also to boost the ease of doing business.
It replaces and subsumes all indirect taxes and creates a one nation one tax market. Effective 1st July 2017, the following indirect taxes are subsumed into GST:
1. Central sales tax (CST)
2. Central VAT (CENVAT)
3. State VAT (VAT)
4. Service tax (ST)
5. Octroi/ Entry tax
6. Lottery tax
7. Special additional duty of customs
8. Additional excise duty
9. Countervailing duty
10. Entertainment tax
11. Central excise duty
12. Purchase tax
Advantages of the introduction of GST can broadly be summarized as under:
To Citizens:
Simpler tax system
Reduction in prices of goods and services due to elimination of cascading
Uniform prices throughout the country
Transparency in taxation system
Increase in employment opportunities
Trade/Industry:
Reduction in multiplicity of taxes
Mitigation of cascading/double taxation
More efficient neutralization of taxes especially for exports
Development of common national market
Simpler tax regime-fewer rates and exemptions
