GST BASIC
About Goods and Service Tax (GST)
GST Introduction:
GST is a indirect tax applicable to whole India.
GST is a single tax applicable on goods and services right from manufacture to retailer who sell the goods to ultimate consumer.
GST need:
To eliminate prevailing multiplicity. complexity and ambiguity in the area of indirect tax, one single tax was required to be implemented. GST will replace indirect tax levies and proposed Acts are as under:
Central Level Tax: proposed to merge
1. Custom Duty 2. Excise Duty 3. Corporation Tax 4. Service Tax 5. Central Sales Tax 6. Stamp Duty in respect of bill of exchange, cheque & promissory notes.
State Level Tax: proposed to merge
7. Sales Tax ( VAT) 8. Entry & Octroi Tax 9. Tolls Tax 10. Luxury Tax 11. Taxes on lands and building 12. Excise Duty on alcoholic liquor etc. 13. Stamp Duty in respect of documents
State Level Tax: proposed to merge
Under GST, GST & CGST would be levied simultaneously on the transaction of enterprises except on exempted goods and services. Important to note here both the tax CGST & SGST would be levied on same price/Cost unlike the VAT which is levied on value of goods inclusive of CST.
Movement of Tax : Sale within state
Movement of Tax : Sale interstate
