GST: One Nation-One Tax, breaking the boundaries within states

GST Bill has now paved its way for the concept of one nation, one tax. The Goods and Service Tax will enable both the Center and States to simultaneously levy GST, which will subsume all indirect taxes currently levied, including excise duties and service tax. GST would mitigate double taxation by amalgamating central and state tax into one. Currently goods and services sold in India are taxed at 25% ~ 30% from the source to consumer by state, central and local administration. Post GST, the tax on goods and services will be in the range of 5% ~ 28%. There are more than 150 countries that have introduced GST. So, India will also join the league whereby the government of the country wishes to simplify the tax regime. 23 states in India have ratified the GST Bill. The bill after ratification by majority of states have received assent from President of India. India has decided to opt for dual GST system. Features of GST: Applicable on supply of supply of goods and services. List of exempted goods and services would be kept to a minimum. It will be Destination based tax as against present concept of origin based tax. It would be a dual GST with the Centre and the States simultaneously levying it on common base. GST levied by … Continue reading GST: One Nation-One Tax, breaking the boundaries within states

Read More