GST - GOODS & SERVICES TAX
What is GST, scope & post GST Scenario?
GST is the biggest tax reform in the history of Independent India in the era of Indirect Taxation. Earlier as per the structure of the constititution both central government and state government had a rights to levy the various duties and taxes on the various activities such as sale of goods, sale of services and other activities Eg. Tax on Sale of goods use to fall under State Revenue but tax on Sale of Services was the right of Center . With the help of introduction of GST such bifurcation will be the history. Above mentioned structured resulted into different state VAT acts such as Maharashtra VAT, Gujrat VAT along with variations into local taxes and other duties by the state government. In the post GST scenario situation will be entirely different and all such variety of taxes will subsumed into one Tax called GST.
In India we have opted for dual GST model where intra state transactions are subject to CGST and SGST, Interstate transactions were subject to IGST and additional taxes. This will result into reduction of different state wise compliances for payment of taxes & return filling, multiple taxes & duties, double taxation and non allowance of input tax credit at multiple stages.