Goods and Services Tax (GST) is an indirect tax levied in India on the supply of goods and services. The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%,18% and 28%.it has adopted the Dual GST model in which both States and Central levies tax on Goods or Services or both.
State GST, collected by the State Govt.
Central GST, collected by the Central Govt.
Integrated GST, collected by the Central Govt.
No Tax on Tax or Tax Cascading
Uninterrupted input tax credit in the supply chain process
Supply of goods and services share the same tax
Items are classified in same manner unlike current classification different for excise and VAT. VAT item classification deferrers from state to state
Origin based taxation to destination based taxation
GST will bring in transparent and corruption-free tax administration, removing the current shortcomings in indirect tax structure. GST is business friendly as well as consumer friendly.GST in India is poised to drastically improve the positions of each of these stakeholders. We need a change in the taxation system which is better than earlier taxation. This need for change leads us to ‘need for GST’.
GST will allow India to better negotiate its terms in the international trade forums.GST aimed at increasing the taxpayer base by bringing SMEs and the unorganized sector under its compliance. This will make the Indian market more stable than before and Indian companies can compete with foreign companies.
Persons making inter-State taxable supply
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