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GST
What is goods and service tax in India?
What is Goods and Services Tax?
What is GST ?
‘G’ – Goods
‘S’ – Services
‘T’ – Tax
“Goods and Service Tax (GST) is a comprehensive indirect tax levy on manufacture, sale and consumption of goods and service at a national level.
GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.”
NEED For GST
Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes is not only desirable but imperative in the emerging economic environment. Increasingly, services are used or consumed in production and distribution of goods and vice versa. Separate taxation of goods and services often requires splitting of transaction values into value of goods and services for taxation, which leads to greater complexities, administration and compliances costs. Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax based on VAT principle, would also greatly help in removing economic distortions and will help in development of a common national market.
GST - Salient Features:-
(1)It would be applicable to all transactions of goods and service.
(2)It to be paid to the accounts of the Centre and the States separately.
(3)The rules for taking and utilization of credit for the Central GST and the State GST would be aligned.
(4)Cross utilization of ITC between the Central GST and the State GST would not be allowed except in the case of inter-State supply of goods.
(5)The Centre and the States would have concurrent jurisdiction for the entire value chain and for all taxpayers on the basis of thresholds for goods and services prescribed for the States and the Centre.
(6)The taxpayer would need to submit common format for periodical returns, to both the Central and to the concerned State GST authorities.
What will be out of GST?
Levies on petroleum products
Levies on alcoholic products
Taxes on lottery and betting
Basic customs duty and safeguard duties on import of goods into India
Entry taxes levied by municipalities or panchayats
Entertainment and Luxury taxes
Electricity duties/ taxes
Stamp duties on immovable properties
Taxes on vehicles
