Goods and Services Tax
GST (Goods and Services Tax)
Goods and Services Tax is an important indirect tax system, India 2 Years Ago Implement from July 1, 2017, which is passed by the government and several economists after independence. The biggest economic improvement is explained. This will remove the various taxes being levied at different rates by the Central and various State Governments, and the same indirect tax system will be implemented for the entire country, which will help India to create a unified integrated market.
Before July 1, 2017, there are many different taxes by the Central and the State Government on different goods, but by coming to GST, all goods will be taxed at the same rate as before 30 to 35% on any luggage. Taxes imposed on certain things were directly indirectly taxed more than 50%, after coming to GST, this tax would be maximized to 28%, in which there is no indirect tax GST will make India’s economy a country one taxing economy. At present, Indians pay 17 different types of taxes, but after GST, only one type will be taxed, after the implementation of the tax, excise duty, service tax, VAT, entertainment tax, luxury taxes, etc. will end.
After GST is implemented, tax on any goods and services will be found where it will be sold. Instead of excise duty, additional excise duty, central sales tax, VAT, luxury tax, service tax, etc, at different levels of GST, it will now only be GST. GST Council has reduced tax rates on 66 types of products. In India, there are four non-level slabs in only 5 countries, including India at the international level of GST tax rate.)
GST (Goods and Services Tax ) Rates
The GST Council has set four types of taxes, these are 5, 12, 18 and 28 percent this is GST Old Rate and New GST Rate. (5, 12, and 18 Percent). Though many things have been exempted from GST, no tax will be levied on those items or GST will not be considered, while luxury and expensive goods will also be cussed besides GST. According to the government, 81 percent of these items will come up to 18 percent of GST.
In the ideal situation, it should be done at the same rate, but in India, there are different rates in different states on state and center and on the same item or service, etc. 4 rates were initially determined so that in current revenue No more difference. These four GST Rates are 5%, 12%, 18% and 28%. Essential items such as milk, lassi, curd, honey, fruits and vegetables, flour, gram flour, fresh meat, fish, chicken, egg, bread, GST will not be used on items like salt, vermilion, stamp, judicial documents, printed books, newspapers, bangles, and handlooms etc. Merchants with an annual sales of less than 20 lakhs have been exempted from this tax regime.
Nature of GST (Goods and Services Tax)
Goods and Services Tax is a value added tax which is a single tax on the supply of goods and services from manufacturers to consumers. The benefit of the input tax paid on each stage will be available in the next phase of value addition, which at one stage makes GST essentially one by one on value addition. The final consumers must bear the same GST imposed by the final dealer in the supply chain. This will end all the profits of the previous steps.
Taxes on taxation, transfers of goods, tax on Central Sales Tax (CST), State Level Sales Tax or VAT, entry tax, lottery tax, stamp duty, telecom license fee, turnover tax, electricity usage or sales It is now being implemented by the same tax in place of many taxes.
Benefits of GST Tax
According to the release issued by the Ministry of Finance, the following benefits are possible through this arrangement.
Business and industry
Easy compliance, transparency: A strong and comprehensive information technology system will be the foundation of GST system in India, so all taxation services like registration, return, payment etc. will be available online to taxpayers, so that its compliance will be very simple and transparent.
The termination of tax cases on taxes
the price chain and the smooth system of tax credits outside the boundaries of all the states will ensure that taxes are minimally taxable. This will reduce the hidden costs of doing business.
Uniformity of tax rates and structures
GST will ensure that indirect tax rates and structures are the same across the country. It will be easier to do business just in case there is a sense of resilience. In other words, GST will make the taxation of business in the country neutral, even if the choice of business place to go anywhere.
Decreasing transaction cost in business will lead to improving competitiveness for trade and industry.
Benefits to Exporters and Manufacturers
With the inclusion of central and state taxes in GST and the complete and comprehensive inputs and services of the inputs and services and the central sales tax step by step, the cost of locally manufactured goods and services is reduced. Will go. This will increase the competitiveness of Indian goods and services in the international market and also promote Indian exports. The uniformity of tax rates and procedures across the country will have to go a long way in reducing compliance costs.
Consumers Benefits of GST
Due to the non-input tax credits available in the progressive steps of multi-indirect taxes or value addition imposed by the Central and the States, the single and the transparent tax of the value of goods and services, today, due to the many hidden taxes in the country, at the cost of most commodities and services have an impact on. Under GST, from manufacturers to consumers, only one will do the tax, which will lead to transparency in taxes on the final consumer.
Relief in overall tax burden – Due to increasing efficiency and misconduct, the overall tax burden on most consumer goods will be reduced, which will benefit the consumers
Central and State Governments GST Benefits
Multidimensional indirect taxes at the center and at the state level are being removed by implementing GST. Based on the strong information technology system, GST will be very simple and easy from the administrative perspective compared to all other direct taxes imposed by the Center and the states.
Better control over misconduct – due to strong information technology infrastructure, better compliance results than GST. In a series of value promotion, by input tax credit from one stage to the next, there is an intrinsic mechanism in the nature of GST, in which the traders will be encouraged in tax compliance.
More Revenue Dexterity – GST is expected to bring down the recovery cost of government tax revenues. Therefore, it will lead to higher revenue efficiency.