All About GST India (Goods and Services Tax)
After a long wait finally a new tax reform related to indirect taxation will be implement in India. Currently where various type of indirect taxation become hurdle of growth of the nation, GST a smooth and a single tax reform will make a transparent and easily going tax structure will help in fast development of economy.
The GST is the single solution for all the Taxation System for Goods and Services. The taxes currently applicable in India include VAT, Entertainment Tax, Service Tax, Excise, Luxury Tax etc.
The Central Government Goods and Service Tax will absorb following applicable taxes:
- Central Excise Duty
- The Excise Duty levied under Medicinal and toiletries preparation Act
- Education Cess and Secondary and Higher Secondary education Cess
- Service Tax
- Additional Excise Duty
- Additional Custom Duty (CVD)
- Special Additional Duty
The State Government Goods and Service Tax will take in following applicable taxes:
- VAT/ Sales Tax
- Purchase Tax
- State Cess and Surcharge related to supply of goods and services.
- Entertainment Tax (unless it is levied by local bodies)
- Tax on lottery
- Luxury Tax
Indian Government discloses the GST draft law and rules related to registration, return, refund, invoice and payments.
Department has issued some formats related to registration, return, refund, challans and invoices. These formats are as follows.
After pass the GST in the both houses of the parliament a council related to development of rates and exemption notifications and rates is introduce by the department.
The council has been declared the rates related to GST. These rates are as follows:
The major objective of the Goods and Service Tax will be to eliminate the double taxation or cascading effect on the production and the distribution of the goods. The exclusion of the cascading effect on the goods will benefit both the manufacturers and the consumers and would improve the GDP of the nation. The integration of different taxes under the GST will make certain things easy and will make the system more open for the consumption tax under the VAT.