The technical structure and strategy of indirect taxes in India is not the simple one. Innumerable types of taxes are imposed on the normal citizen in the name of different norms and regilation. However, the fabrications of tax rules are levied by central Govt and state Govt differently. Generally we are paying numerous types of taxes such as entertainment taxes for watching movie and other relevant shows, we are paying VAT (value added tax), and luxury taxes, Goods tax, importing exporting taxes, sales tax and many other like this. It is the demand of long decade that the taxes applied by the state or central Govt in various spheres are to be unified in a single tax cart instead of borrowing them in different category. Nonetheless, some of them are levied by state government whilst rest is applied by the central government. And there is the confront stands how to assimilate them in a single frame?
This article is dealing about the tax regulation, where Goods and Services taxes are the main point of discussion. How they work actually, what is the definition, the advantages of GST bill from common mass to corporate?
The basic definition of GST:
It has been a long raised demand from the end users of this country to revamp the structure of taxes in a single streamline taxation system by implementing all other different types and patterns of indirect taxes. This particular system is termed as Goods and services tax GST where the major objective is to eliminate all different levied indirect taxes into a single system which is named as GST. According to the name, the system will be imposed upon both the goods and services.
It is introduced first time in the year of 2007-2008 budget sessions. Gradually, it passed all administrative and constitutional bills and is now get ready for coming budget session. The recent central government is very active in this section in order to implement the GST amendment bill.
GST is a levy or taxation system where consumption is based on the destination principle. It can be partitioned in two components such as CGST (Central Goods and Service Tax), and SGST (State Goods and Service Tax). The applicable domains this tax facility are such as intra-state supply of goods and consumption and services, import of different goods and services, and inter-state movement of goods.
Benefits of this GST implementation:
- Tax structure will be simple and applicable for all.
- The entire market can be unified including low scale businesses.
- Literally, it would be helpful for export related business.
- GST can convert the high prices to lower prices of the goods.
- It can produce transparency and precise compliance.
- Companies out of the frame can be bought inside the tax regime.
Since GST makes the valuable replacement abolishing many cascading taxes, the common mass get benefited from