GST (Goods and Service Tax) in India is regarded as one of the largest taxations that has taken place in India and also passed by the Indian Government. India has adopted two GST that means GST will be administrated both by the State Government as well as by the Central Government. GST has replaced all other taxes like Excise duty, Service Tax, VAT, CST etc. which results in availability of services and products to consumers at a lower price.
Recently, Assocham has given suggestions that the government should consider and cut the GST rates by 25% for all slabs, and that will encourage businesses to pay GST more which will boost the Indian economy. It is believed that the GST in India will bring change in the tax system by distributing the burden of tax equally between the services and manufacturing.
The chief aim of GST is to bring the single taxation system for the purpose of manufacture and the sale of goods at both in the central as well as state level in the country. The GST is executed mainly to remove all other taxes like VAT, Excise duty and Sales Tax.
As per the retail industry of India, the total tax component is around 30% of the product cost. Due to the GST’s impact the taxes have gone down. Therefore, the end consumer has to pay lesser taxes. As the taxes became reduced it has enhanced the production as well as the growth of the retail of other industries.
There are three taxes that are applicable under the GST and they are as follows:
a) CGST: CGST is the tax collected by the Central Government of India.
b) SGST: SGST is the tax that is collected by the State Government of India.
c) IGST: This is the tax that is collected by the Central Government of India for an inter- state sale.
The impact of GST in India are as follows:
a) Simplification of the tax structure.
b) It has enhanced the pan India operation.
c) Transparency in GST system.
d) It has increased the revenues.
e) Fostering production.
f) Increase in exports.
g) SME support.
In keeping the federal structure of India, it is proposed that the GST will be issued both by the Central Government (CGST) and the State Government (SGST). Prime Minister Narendra Modi introduced GST in India on the midnight of 1st July 2017.The development of GST took many negotiations as well as revisions before getting launched in India in its final form in the year 2017.
About Vishesh Jangir
Mr. Vishesh Jangir is a reputed GST practitioner in new Delhi,north-west-Delhi. is recognized for GST Advisory and tax optimization works. Here one can accept full spectrum of work like Accounting Planning, GST tax optimization, GST reconciliation Services are tailored here as per clients requirement.