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| GOODS AND SERVICE TAX |
Hello Professionals, ^_^
From this blog you will able to known about GST and....
Goods and Service
GST
What's it?,
What are the benefits of GST.
Why it is important for Indian Economy and for the Indian people is it or not.
First we discus what is Goods and Services??
In simple,
Goods and Services are the outcome of human efforts
to meet the wants and needs of people.
Goods
are items that can be seen and touched,
such as books, pens, salt, shoes, hats, and folders.
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Services
are provided by other people, such as doctors, lawn care workers,
dentists, barbers and waiters.
Simply
NOW
GST
GOODS AND SERVICE TAX
GST GST GST what is GST every where in newspaper, news, TV, even in Classes every person curious about it. That's why i am here to tell you What is GST....
Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a National level.
Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.
The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.
Experts say that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate.
And in simply GST is the way of reducing burden of TAX in each stage.. and finally who purchase pays tax .... double taxation is abolished by this.
GST is an INDIRECT TAX that is expected to change or revive the fortune of the Indian economy.
Now you all are known waht is GST ^_^
and
Now --- What are the benefits of GST??
Under GST,
the taxation burden will be
divided equitably
between
Manufacturing and Services,
through a lower tax rate
by increasing the tax base and
minimizing exemptions.
It is expected to help build a
transparent & corruption-free tax administration.
GST will be is levied only at the destination point,
and not at various points (from manufacturing to retail outlets).
Currently,
a manufacturer needs to pay tax when a finished product
moves out from a factory,
and
it is again taxed at the retail outlet when sold.
How will it benefit the Centre and the States?
It is estimated that India
will gain $15 billion a year
by implementing
the Goods and Services Tax
as it would
promote exports,
raise employment &
boost growth.
The prices are expected to fall in the long term as dealers might pass on the benefits of the reduced tax to consumers.
What type of GST is proposed for India?
India is planning to implement a dual GST system. Under dual GST,
a Central Goods and Services Tax (CGST) and
a State Goods and Services Tax (SGST)
will be levied on the taxable value of a transaction.
All goods and services, barring a few exceptions, will be brought into the GST base.
There will be no distinction between goods and services.
Which other nations have a similar tax structure????
Almost 140 countries have already implemented the GST. Most of the countries have a unified GST system. Brazil and Canada follow a dual system where GST is levied by both the Union and the State governments.
France was the first country to introduce GST system in 1954.
Against GST
The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready by April 2010 to implement GST. States have sought assurances that their existing revenues will be protected.
The central government has offered to compensate States in case of a loss in revenues.
Some States fear that if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States.
However, backward and less-developed States could see a fall in tax collections. GST could see better revenue collection for some States as the consumption of goods and services will rise.
You See that it is important for Indian Economy for reducing double taxation in the country and increase Revenue for the government. Govt. use it in OUR COUNTRY DEVELOPMENT like improve infrastructure, improve our standard of living and many more they can do for us. Now this is the time of RULE INDIA over the world. And World Except it with Respect.
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KAMAL PRAJAPATI
