Will GST come
or not? Will GST result in benefit to the economy and the end user of our
country? Will GST result in reduced rates or increased rates? What will be with
Exemptions, Input Tax Credit, Abatement etc.? Will it result in more
compliances or not? These are the few questions which are prevailing in the
minds of common man and businesses and it is obvious that when there is a major
change or say milestone change in any law there arises various questions. These
all questions will be answered by Central & State Government and by GST Law
itself. Welcome Friends to the World of GST. GST stands for "Goods and
Services Tax". After Levy of GST all Indirect Taxes will subsume and there
will be only one Tax ,i.e., GST.
Let me tell you, the main objective of GST is to bring uniformity in the Indirect Taxes like Direct Taxes. As Direct Taxes are same in the whole country in the same manner after GST Indirect Taxes will be same. GST is a combination of CGST(for Central Taxes), IGST(for Inter-State Taxes) & SGST(for Intra-State Taxes).As direct Taxes have Slab Rate for Individuals/HUF and different rates for other persons in the like manner GST would be having 4 rates for different goods & services.Goods which are of basic needs or widely consumed will attract less rates and others will attract high rates and maximum rates will be levied in case of Luxury Goods & Tobacco. After GST credit can be availed by every registered person. Earlier in prevailing Indirect Taxation system VAT dealer was not allowed to take credit of Excise & Service Tax after GST all Indirect Taxes will be subsumed and Vat Dealer will be allowed to take credit of Excise & Service Tax in the form of GST. As a result it will result in benefit to the end user.
As the main objective of GST is to bring uniformity in which VAT failed under GST there is a GST Council which will be the whole sole governing body of the GST. If Central or any State Government wants to make change they have to move to GST Council for their permission which was not under VAT due to which VAT failed. So there will be uniformity which will definitely result in benefit to the economy & most importantly the End User of the Goods& Services. Likely Date of GST coming to force is 1st July 2017 and it is certain that it will come into force on this date.
Let me tell you, the main objective of GST is to bring uniformity in the Indirect Taxes like Direct Taxes. As Direct Taxes are same in the whole country in the same manner after GST Indirect Taxes will be same. GST is a combination of CGST(for Central Taxes), IGST(for Inter-State Taxes) & SGST(for Intra-State Taxes).As direct Taxes have Slab Rate for Individuals/HUF and different rates for other persons in the like manner GST would be having 4 rates for different goods & services.Goods which are of basic needs or widely consumed will attract less rates and others will attract high rates and maximum rates will be levied in case of Luxury Goods & Tobacco. After GST credit can be availed by every registered person. Earlier in prevailing Indirect Taxation system VAT dealer was not allowed to take credit of Excise & Service Tax after GST all Indirect Taxes will be subsumed and Vat Dealer will be allowed to take credit of Excise & Service Tax in the form of GST. As a result it will result in benefit to the end user.
As the main objective of GST is to bring uniformity in which VAT failed under GST there is a GST Council which will be the whole sole governing body of the GST. If Central or any State Government wants to make change they have to move to GST Council for their permission which was not under VAT due to which VAT failed. So there will be uniformity which will definitely result in benefit to the economy & most importantly the End User of the Goods& Services. Likely Date of GST coming to force is 1st July 2017 and it is certain that it will come into force on this date.
Sanidhya Pastore
(Tax Consultant)
