GST – Goods and Service Tax is the India’s Biggest Tax Reforms Since Independence is passed on Rajya Sabha and will implement from April 2017. As its is the biggest Tax reform in History, we must have to know What is GST and Why India need it ?
GST is reform of Indirect Tax structure in India. A uniform tax Structure from central Govt which abolishes most of the multiple Tax structure of Center to State.
What is GST and Why India Need it?
First of all, we have to understand about GST and then why we need it for India?
GST is a Uniform tax structure for Goods and services in the country. It will impact every sphere of the business activity and improve the economic condition. After the GST implementation , there will be no multiple Tax applied to the Goods and services.
GST can be defined as a consumption-based tax which is applicable when a consumer buys goods or services.
Which Taxes are replaced against GST?
As GST is a Uniform Tax it will overcome the following Indirect taxes.
- Central Excise Duty
- Additional Excise Duty
- Service Tax
- Additional Duty on Customs ( Not Custom Duty)
- VAT/Sales Tax Imposed by State Govt
- Octroi & Entry tax by State Govt
- Purchase Tax by State Govt
- State Cesses/ Purchases
This is one of the best Video prepared by Ayussh Sanghi for Unacademy, which clearly explain about GST and its implications.
Below are top 5 article you must read to understand GST better.