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
♦ Octroi

Benefits of GST:
Business and Industry                                           Central and State Govt.                                          For the Consumer
Easy Compliance                                                    Simple and easy to administer                            Transparency of Taxes paid
Uniformity of Taxes                                                Better Tax compliance                                           Lesser Tax Burden
Reduces Compliance Cost                                   Efficacy Greater Revenue
Improved Competitiveness
Seamless Tax Credits

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!!!

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