The GST Economy - One Country One Tax

The Goods and Services Tax (GST) bill was passed with a full majority in the Lok Sabha on March 29, 2017, and on April 6, 2017, in the Rajya Sabha. President Mr. Pranab Mukherjee on April 11, 2017, signed GST bill and made it a law, introducing the biggest indirect tax reform in India. The expected rollout date of the GST was April 1, 2017; however, it is now scheduled to be implemented from July 1, 2017.

At present, the structure of indirect taxes in India is very complex as there are many types of taxes levied by the Central as well as State Governments of India on goods and services. Some examples are - Entertainment Tax on movies, Value Added Tax (VAT) on products and services, Excise Duties, Luxury Tax, Import Duties, Service Tax, Central Sales Tax, and so on.

Wouldn’t it be convenient for both of the buyers and sellers if there is just one unified tax rate in India instead of multiple taxes?

This is possible with GST! If you are not aware of this standard taxation policy which is soon going to be implemented all across the country, here is everything you should know about it:

GST: A Brief Introduction

GST (Goods and Services Tax) is a “single taxation” system which is expected to abolish all forms of indirect taxes on goods and services in India. Any individual, who is supplying, providing or consuming goods and services, has to pay GST.

It is collected at each stage of the supply chain on value-added goods and services. Once implemented, the manufacturers, wholesalers, retailers and consumers will have to pay the applicable GST rate. They can claim it back too, via tax credit mechanism.

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