What is GST? GST - An Introduction

GST - One Nation, One Tax and One Market. It is being considered as one of the biggest indirect tax reform after independence.

But what is GST?

Goods and Services Act, 2016 - An Introduction

History:

The reform process in indirect tax regime of India was initiated by Vishwanath Pratap Singh introduction of Modified Value Added Tax (MODVAT) way back in 1986.

Taxes Subsumed:

Goods and services tax (GST) will subsume 17 indirect taxes including central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi.

The following taxes (at Central and State level both) will be subsumed under GST:

·         Central Excise Duty (Excise)

·         Additional Excise Duty

·         Excise Duty levied under Medicinal & Toilet Preparation (Excise Duties) Act, 1955

·         Service Tax (Service Tax)

·         Countervailing Duty(CVD)

·         Special Countervailing Duty (SAD)

·         Sales Tax / Value Added Tax (VAT)

·         Central Sales Tax (CST)

·         Octroi

·         Entertainment Tax

·         Entry Tax

·         Purchase Tax

·         Luxury Tax

·         Advertisement taxes

·         Taxes applicable on lotteries

·         State surcharges and cesses as so far they relate to supply of goods and services

Taxes not likely to be subsumed under GST:

·   Basic Customs Duty

·   Other Custom Duty like Anti-Dumping Duty, Safeguard Duty etc

·   Export Duty

·   Road and Passenger tax

·   Property Tax

·   Stamp duty

·   Toll Tax

·   Electricity Duty

GST is levied on all transactions such as sale, transfer, barter, lease, or import of goods and/or services. India will adopt a dual GST model, meaning that taxation is administered by both the Union and State Governments.