What is GST?
GST is an acronym for Goods and Services tax, it’s an indirect and integrated tax that is levied across the country on all services and products. Previously, there was a string of taxes attached to product or services, at every stage it was levied by the State and Union governments at varying rates. GST is created to eradicate all the other indirect taxes imposed by the Central and State government.
GST in India
The official GST bill was first introduced in 2014. The Parliament passed the bill in May of 2015 with a majority of votes favoring it, 352 to be exact. The Goods and services tax structure was eventually rolled out on the 1st of July 2017.
Following are some of the notable taxes that are absorbed by GST -
- Central Excise Duty
- Service Tax
- Value Added Tax
- Additional Excise duties
- Additional Customs duties
- Sales tax
- Entertainment tax
- Luxury tax
- Purchase and entry tax
- GST is a federal law, this forbids anyone from making any new laws on taxation
- Makes the entire tax system comprehensible and makes implementation cheaper at several levels
- Cheaper to buy products and services from other states
- Tax evasion will be eradicated
Previously there were several products that were exempt from taxes but after implementation of GST even these products are taxable