Tuesday 30 August 2016


Hello Aspirants
In order to keep you one step forward�and to boost your�General Knowledge�and�confidence level, here we are�presenting you an important topic ?The Goods and Services Tax? in our�Spark Plug series.�This will surely help you in your exam preparation.
One Nation One Tax ? GST (Goods & Services Tax)
The much awaited GST bill finally cleared by Rajya Sabha, the biggest reform since 1991. In contrast �to do away with various multiple taxes and to implement a uniform tax structure, GST has been �brought into the picture.
The Goods and Services Tax (GST)�is a value added tax that will replace all indirect taxes levied on goods and services by the Government, both Central and States, once it is implemented. The GST Bill, officially known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, proposes a national Value added Tax to be�implemented in India from 1st April 2017. Its working
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Advantages of GST
For the consumer
�Single and transparent tax proportionate to the value of goods and services:�Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.
Relief in overall tax burden:�Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.
�For business
Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.�
Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.
Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
Improved competitiveness:�Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.
Gain to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.
For Central and State Governments
Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the
Related Posts Plugin for WordPress, Blogger...

Vacancy

RBI has announced the recruitment for 134 GRADE B OFFICERS.
 The examination will be in two phases.
 The detailed advertisement will be published on 5th October.

Popular Posts