GST - All You Should Know About !

Kode Iklan Title Artikel

Klik Captcha Terlebih Dahulu

Kode Iklan Tengah Artikel

Goods and Services Tax in short term referred as GST. Before we go for understanding GST, let us understand different types of Taxes available for common man.

Taxes can be broadly classified in to two types :

1. Direct Taxes
2. Indirect Taxes.

Direct Taxes, as name itself denotes public will directly pay taxes to Government in form of Income tax, wealth tax etc.,

Indirect taxes are applicable for manufacturing of Goods and services  and which will be paid by Companies initially and transferred to end Users eventually.

GST is an Indirect Tax which is going to have its way in India from July 1, 2017. In simple words we can say GST as One India One Tax as far Indirect taxes are concerned. In current system, different types of indirect taxes are being applied on Goods and Services by State and Central Governments like Service tax, Value Added Tax, Excise duty etc., there by increasing price of final product at consumer end. Catch here is that Price of same product or service may not be same across the Country given State Government taxes may vary. A classic example we can quote here is Price of Petrol, which is different across different states.

Once GST made live in India, Taxes will be uniform across the Country and cascading of taxes will be eliminated and will provide manufacturers to pay taxes in one go. Uniformity of Taxes will be same across same category of products. Since GST will be collected by Central Government, it will reduce burden on State Government for maintaining Infrastructure to collect various indirect taxes that are available now, Central Government will sharing revenue with State Governments as per agreed mechanism.

For end consumers, prices of few products may come down which are being double taxed by Central and State Governments  will come under GST regime. GST taxation slabs are provided in this article for your quick reference.

Under GST regime, below are different types of taxes will get redundant which are being collected by both Central and State Governments :

• Service Tax
• Countervailing Duty
• Value Added Tax (VAT)
• Central Sales Tax (CST)
• Octroi
• Entertainment Tax
• Entry Tax
• Luxury Tax
• Taxes applicable on lotteries
• Purchase Tax
• Advertisement taxes
• Central Excise Duty
• Special Countervailing Duty

GST tax slabs are fixated at 0,5,12,18 and 28% respectively based on category decided by GST committee. With GST coming effective from July 01, 2017 we can expect prices of essential commodities like rice,milk etc., to go down and prices few products may go up like AC, refrigerators etc.,

In short term implementation of GST may create chaos in the market due to understanding issues of Retailer, Consumers. But in long term it is expected that GST may give push to GDP by 0.5 to 1.4 % percent which is definitely a good push for a developing Country India.

Kode Iklan Tengah Artikel