ALL YOU NEED TO KNOW ABOUT GST
GST stands for Goods and Service Tax, implemented in India on 1st July, 2017. It follows the ideology of “One Nation One Tax”. GST is a comprehensive indirect tax that was designed to bring indirect taxation under one umbrella.
KEY POINTS TO BE NOTED:
· The role of GST in Indian Taxation System adds value at each stage and
will set off the rates at central and state level both.
· GST is a value-added tax imposed on most goods and services sold for
domestic consumption purpose.
· The GST is paid by consumers, but it is transmitted to the government for
the sold goods and services by the business.
HOW IT WORKS AND ITS OBJECTIVES:
· Single tax rate implemented throughout the country.
· Merges central taxes (i.e., sales tax, excise duty tax and service tax) with
state-level taxes (i.e., entertainment tax, entry tax, transfer tax, sin tax and
. “One Nation One Tax” ideology.
· To increase the taxpayer base.
· An improved logistics and distribution system.
· To promote competitive pricing and increase consumption of goods and
WHY DO WE NEED IT?
Goods and Services Tax in India leads to a high-cost, disorganized and weak tax structure liable to breach and revenue leakage. Hence, the government needed a more reliable and safer tax system, not prone to any corruption. In the modern tax system implemented by government, i.e., Goods and Service Tax, tax adds value at each stage of output and set-offs the rate at central and state level both. There would be more taxpayers, since the tax structure has become simple. It will boost the consumption of goods and increase the exports as well.
· More reliable and simple tax system.
· Tax system adds value at each stage of output and set-offs the rate at
central and state level both.
· Increases the number of taxpayers.
· Boosts the goods consumption
· Boosts the exports.
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