What is GST?
Introduction:
GST is an Indirect Tax which has
replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed
in the Parliament on 29th March 2017. The Act came into effect on 1st July
2017; Goods & Services Tax Law in India is a comprehensive, multi-stage,
destination-based tax that is levied on every value addition.
In simple words, Goods and Service
Tax (GST) is an indirect tax levied on the supply of goods and services. This
law has replaced many indirect tax laws that previously existed in India.
Under the GST regime, the tax is
levied at every point of sale. In the case of intra-state sales, Central GST
and State GST are charged. Inter-state sales are chargeable to Integrated GST.
“GST is a comprehensive, multi-stage, destination-based
tax that is levied on every value addition.”
Goods and services tax means a tax
on supply of goods or services, or both, except taxes on supply of alcoholic
liquor for human consumption (Article 366 (12A) of Constitution of India).
Ø GST
is a value added tax levy on sale or service or both.
Ø GST
is a destination based consumption tax.
Ø GST
offers comprehensive and continuous chain of tax credit.
Ø GST
where burden borne by final consumer.
Ø GST
eliminate cascading effect of tax.
Ø GST
brings uniform tax structure all over India.
Objectives :
Ø No
cascading of taxes
Ø Reduced
compliance cost
Ø Seamless
flow of credit
Ø Less
wastage of time and effort to comply
Ø Few
number of taxes
Ø Transparent
and corruption free
Ø Supportive
to compete at Domestic and International Market
Ø Buoyancy
in tax collection both for Central and State/UT
Ø Tax
impact on inflation should be minimal.
1. Balachandran V - Indirect Taxes
2. ICAI - Indirect Taxes
3. ICSI - Indirect Taxes
4. ICMAI - Indirect Taxes
6. ClearTax.Com
7. Taxmann.Com
8. TaxGuru.Com
9. Quora.Com
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