Today we will discuss on Most awaiting tax Goods and service tax in India. what are the advantage of GST, implication of GST , hurdles in GST etc.
(I) What is the meaning of GST TAX?
Today there are lots of Indirect taxes in India levied by state and central government like VAT,CST, Excise duty, service tax. GST tax will be a single simple indirect tax to be levied in India.
(II) Why there is a need of GST?
As there are many taxes in India, there are lots of complicacy in current tax system whether the particular transaction is covered under vat or service tax.
(III)What is the Advantage of GST to businessman?
GST will provide the Hassle free tax system to the Businessman, now there are lots of compliance to be done by the businessman under various tax (Service tax, Excise, Octroi, Vat, Turnover tax etc). After applicability of GST all the Indirect taxes levied by state and central government will be removed and there will be only one GST TAX levied by the central government.
(IV) What is the Advantage of GST to Consumer?
In current tax system final tax to bear by the consumer same will be in the GST also but consumer will be benefited due to elimination of multiple taxes on the product and double charging in the system.
(V) What is the Advantage of GST to Indian Goverment?
As of now many country in the world have GST System. It will help India to sale the goods overseas at the competative prices and boost exports also it will reduce the administrative cost of Indian Goverment. Also hassle free tax system will attract foreign investor to invest in India. Make in India programme of goverment will be boost by implementing GST in India.
(VI) What are the taxes covered in GST?
After applicability of GST all other taxes levied on goods and service like (VAT, CST, EXCISE, SERVICE TAX,OCTROI) will be removed.
(VII) What are the taxes not covered in GST?
Direct tax like income tax and Wealth tax will not be covered in GST.
(VIII) IS Tax credit allowed in GST?
Yes, there will be the Input/Cenvat credit procedure in the GST. As of now there is Cenvat credit in service tax and excise and input credit on material is allowed in Vat. In GST also there will be Tax credit procedure; tax credit will be available at each stage on each value chain. Ex if tax paid on Rs 2,00,000 @10% will be 20,000 at first stage and the same goods is sale at Rs 2,50,000 output tax will be 25,000/-. Tax credit will be 20,000/- and tax to be paid will be 5,000/-.
(IX) What are the goods and services covered under GST?
All the goods and service will be covered in the GST
(VIII) What are the disadvantages of GST?
As there are not so much disadvantage of GST, but it will take some time for the people to understand the compliance for the same.
(X) What are the Hurdles in implication of GST tax in India?
Many of the state government are not agree with the GST tax in India, Today there are many taxes levied by the central government and many by the state government, Central government revenue will be from central tax and state government revenue will be from state tax.As there will be only one tax GST will be levied by the central government, State government are concern with their revenue share.