ONE NATION, ONE TAX….FROM JULY 1 !!!

GST (Goods and Services Tax), a major breakthrough has the potential to make India competitive.  A single tax to replace multiple levies is imposed to Augment Economic Gain and Curtail Compliance Pain. GST is charged on all dealings such as import of goods and/or other services, sale, lease, transfer, purchase, and barter.

Integrating several Central and State taxes into a single tax should lead to easier management and implementation. A Nation is complete when taxes are paid. The prime plus would be in terms of a decrease in the overall tax burden on goods for the buyer. GST amalgamates:

♦ Central Excise Duty                         ♦ Entertainment Tax
♦ Service Tax                                      ♦ Entry Tax
♦ Commercial Tax                               ♦ Purchase Tax
♦ Value Added Tax (VAT)                    ♦ Luxury Tax
♦ Food Tax                                          ♦ Advertisement taxes
♦ Central Sales Tax (CST)                  ♦ Taxes applicable on lotteries


Benefits of GST:
Business and Industry                                          Central and State Govt.
Efficacy Greater Revenue                                    Seamless Tax Credits
Uniformity of Taxes                                               Better Tax compliance
Reduces Compliance Cost                                   Easy Compliance
Improved Competitiveness                                   For the Consumer
Transparency of Taxes paid                                  Lesser Tax Burden
Simple and easy to administer
Nevertheless, GST will be a substantial reform of the indirect tax structure of India. Every person/business providing amenities is liable to charge for the GST. Mixed reviews of GST as a success or a failure is to wait and watch. The journey begins!!!

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *