In 2017 dual GST structure was established in India. It is one of the biggest tax reforms in the history of our country. The purpose of this reform was to eliminate double taxation and to bring uniformity in tax rates thru out the nation.
In 2017 dual GST structure was established in India. It is one of the biggest tax reforms in the history of our country. The purpose of this reform was to eliminate double taxation and to bring uniformity in tax rates thru out the nation.
Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax. The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
Subsume following indirect taxes
GST will have two components comprising
Central GST (CGST) levied and collected by the Centre government and State GST (SGST) levied and collected by the states government. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States.
GST
will applicable at every stage of value addition in chain.
An additional Tax of 1%
on Inter State Taxable supply of Goods by State of Origin and it would be non CENVATABLE. This additional tax on supply of goods shall be assigned to the States from where such supplies originate
All goods or services likely to be covered under GST except:
Codification is to be specified
for all goods and services (i.e. Taxable supplies) in the purposed GST structure. New HSN code can be used for classification of goods and existing accounting code can be used for classification of services.
Removes cascading effect of taxation
In nut shell, it could be a revolutionary change in the Indian economy in regards to indirect tax structure of India after independence.