The introduction of GST in India is a revolutionary step that is expected to cure all the ailments the existing complex tax structure is suffering from. It is primarily conceptualized to replace various sorts of taxes levied by the central and state governments with a well-defined tax structure. However, we must acknowledge the fact that there exist several aspects of GST that common taxpayers have yet not comprehended. Herein, in quest of pacifying the qualms of taxpayers across the country, we will discuss all the crucial aspects of GST.
Read on to enlighten yourself with all the relevant GST details!
Goods and Services Tax (GST) is a proposed taxation system aimed at restructuring the overall indirect taxation framework in India. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016 with the prime intention of merging most of the existing taxes, levied by the central and state governments, in India into a well-defined system of taxation.
GST is administered, monitored, and governed by the GST Council, and its Chairman is Mr. Arun Jaitley, Union Finance Minister of India. It is expected that GST would be implemented w.e.f. July 1st, 2017.
Similarly Integrated GST (IGST) will be levied and administered by Centre on every inter-state supply of goods and services. Union territories without legislatures would levy Union Territory GST (UTGST).
All those who cross the turnover threshold are liable to pay GST.
All these information on GST are quite crucial, and taxpayers need to pay special attention to all these aspects in order to develop comprehensive understanding of GST Bill Details.
The existing taxes that are proposed to be subsumed under GST are:
|Taxes currently levied and collected by the Centre||Taxes currently levied and collected by the states|
|Central Excise duty||State VAT|
|Duties of Excise (Medicinal and Toilet Preparations)||Central Sales Tax|
|Additional Duties of Excise (Goods of Special Importance)||Luxury Tax|
|Additional Duties of Excise (Textiles and Textile Products)||Entry Tax (all forms)|
|Additional Duties of Customs (commonly known as CVD)||Entertainment and Amusement Tax (except when levied by the local bodies)|
|Special Additional Duty of Customs (SAD)||Taxes on advertisements|
|Service Tax||Purchase Tax|
|Central Surcharges and Cesses so far as they relate to supply of goods and services||Taxes on lotteries, betting and gambling|
|State Surcharges and Cesses so far as they relate to supply of goods and services|
The introduction of GST is indisputably a major step towards simplifying the overall indirect taxation policy in India, which is not at all business-friendly. The amalgamation of multiple Central and State taxes into one framework would ensure a wide range of strategic benefits for enterprises operating within the national boundary. Not only would GST pave way for hassle-free taxation procedure for businesses in India, but would also facilitate a common national market that can bequeath equal amount of opportunities for businesses in the country.
GST would enable immaculate execution of all the commercial activities within the national boundary as it empowers enterprises to claim tax credit to the overall value of GST they paid to purchase goods and services. As it is a well-known fact that taxable goods and services in India are not distinguished and are taxed at a single rate in a supply chain (till the goods and services reach the consumer), the need of a central authority that can take care of administrative responsibilities to levy tax on goods and services was felt across the nation. With the implementation of the new act, GST-registered businesses can perform transactions and commercial activities without being much bothered about operational and transportation costs.
Considering all these advantages of GST, it can be inferred that every impact of GST in India is bound to pave way for much more promising future for business firms.
The existing taxpayers — registered under VAT, Service Tax, and Excise — are required to migrate into GST tax regime as per the specified dates. To ensure successful migration into GST regime, taxpayers are required to furnish their details on the GST common portal
This portal provides a comprehensive range of GST information which are quite helpful for taxpayers to migrate into GST regime in a hassle-free manner.
To smoothen your GST registration process, you can visit www.gstkeeper.com/gst-registration.php.
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