March 18, 2020

What is GST (Goods and Services Tax)

As we know GST is the largest indirect tax reform of India. The GST will subsume Central Excise Law, State VATs, Entry Tax, Luxury Taxes, Octroi and much more. There were many taxes which were levied on their good like Excise, VAR, entry tax, and octroi. Similar to this service tax, entertainment tax and much more. In addition to GST, there are various taxes in India like Income tax, and people also have to submit a TDS return. Now, there will be one tax that will make your dream of one nation, one tax system feasible.

What is GST in India?

The GST indirect tax is for the whole nation, which helps to make your India one unified common market is helping to for tax on the supply of goods and services.GST is a destination and it is based on their tax which is levied only on their value addition at the stage because credits of input the paid at the procurement of inputs will be available. The consumer bear all the GST charged by their dealer in their supply chain, with the set of benefits at all the previous stages.

How is India’s tax System Structured Work today

Our constitution divided the taxation powers between the states and the center. Income tax is ruled by the central government, which is easily referred to as a direct tax, the indirect tax is manufactures and selling of goods. In India, Indirect tax provides the provision of services is the exclusive domain of their state government. There are many multiple taxes which there is across the borders, In addition, means there are some local indirect taxes levied such as Local Body taxes or we can say the Octroi, These will be abolished after the GST comes into the effect.

GST Benefit to the Consumer

GST will decrease your tax on most of the product and their services: there are three rates of the GST, many products will come into their lower price and there is no overlapping of taxes, the overall tax on the product may go also leads to lower prices.

Relief in overall about tax burden: The account efficiency gains and presentation about their leakages, their overall tax burden and their lower rate on the direct tax can be expected.

To know more about the GST. Just read out our latest blog.

Read More- Top GST Consultants