Monday, 7 October 2019
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Wednesday, 25 September 2019
What is Goods and Services Tax (GST)?
GST is a single uniform indirect
tax which was introduced to replace Central and State indirect taxes such as
VAT, CENVAT, and others. GST applies on all types of businesses, small or
large. This makes it one of the greatest tax reforms in the country. The entire
nation will follow a unified tax structure.
As the name suggests, GST will be
applicable on both goods and services and India will follow a dual system of
GST to keep both the Centre and State independent of each other. The GST
council will be headed by the Union Finance Minister and it will consist of
various State Finance Ministers. GST will be devised as a four-tiered tax
structure with tax slabs of 5%, 12%, 18%, and 28% for various different
categories of products and services. 0% rate is kept for the most essential goods
such as rice, wheat.
Existing Indirect Tax Structure in India
|
Central Taxes
|
State Taxes
|
|
·
Central Excise duty
·
Additional duties of
excise
·
Excise duty levied
under Medicinal &
Toiletries Preparation
Act
·
Additional duties of
customs (CVD &
SAD)
·
Service Tax
·
Surcharges & Cesses
|
·
State VAT / Sales Tax
·
Central Sales Tax
·
Purchase Tax
·
Entertainment Tax
(other than those levied
by local bodies)
·
Luxury Tax
·
Entry Tax (All forms)
·
Taxes on lottery, betting
& gambling
·
Surcharges & Cesses
|
Constitution amended to provide concurrent powers to
both Centre & States to levy GST (Centre to tax sale of goods and States to
tax provision of services)
Tuesday, 24 September 2019
Wednesday, 1 May 2019
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