Goods and Services Tax – GST is now applicable in India that is one of the biggest transformations in Tax history of India. GST is one indirect tax that will be applicable for the whole nation. GST will help to make this country a unified common market. It is a single tax that is applied to the supply of various kinds of goods and services. After GST, the tax system of India will become simple and transparent as compared to the previous tax system that was very complex due to various taxes. This tax system is applied to remove various kinds of tax barriers between all states of India and to make a single market.
One Single Tax for India:
Before GST, there were various kinds of taxes on goods and services. The customers needed to pay the taxes like Central Excise Duty, Value added tax, additional excise duty, Service Tax, Countervailing Duty and many more taxes. It was a complex system of tax in India. Now GST is applied to replace this current complex structure of various kinds of indirect taxes. With all clear road maps and instructions, the GST is implemented in India from 1st July 2017.
GST is implemented as a destination based tax system that will be implemented as a replacement to current Central taxes and various duties like Excise Duty, Service Tax, Counter veiling Duty tax (CVD), Special Additional Duty of Customs (SAD) and various kinds of local state taxes like Value Added Tax (VAT), Central Sales Tax (CST), Entry Tax, Purchase Tax, Luxury Tax, and Entertainment tax. As a replacement of all these taxes and duties, State/Union territory GST and Central GST systems are applicable in India now. They introduced this tax system in India to make this complex system much easier.
Different Categories of GST in India:
From 1st July 2017, GST will be applicable on most of the goods and services in India. They divided the GST into various categories according to the various products and services. There will be four categories of this tax in India. You will need to pay GST of 5 % to 28 % on various goods and services. In these categories, they divided various goods and services according to primary, secondary and luxury needs of people. In 5 % tax category, there are various edibles and cheap cost products in this category. There are also categories of 12 %, 18 % and 28 % GST on various goods and services.
With GST, the market of India will be completely changed and it will be transparent to everyone. This new tax process will open various opportunities of investment in India and people will find it very effective to reduce the cost of various products and services. It is a single tax system that is applied directly from consumer to a customer. The base of paid tax will be increased and this system will be helpful to grow the economy of India. This tax is implemented as a beneficial system for consumers as well as customers.