Friday, 30 June 2017

GST: Everything you want know about One Nation One Tax

As the nation prepares for the rollout of the Goods and Services Tax (GST) from 1st July 2017 midnight, the government has prepared a FAQ sheet based on several questions it received on Twitter.
Here is a summary of some the most frequently asked questions and their answers:
 What is Goods and Services Tax?
  • It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
The GST would replace the following taxes:
1. Taxes currently levied and collected by the Centre:
  1. Central Excise duty
  2. Duties of Excise (Medicinal and Toilet Preparations)
  3. Additional Duties of Excise (Goods of Special Importance)
  4. Additional Duties of Excise (Textiles and Textile Products)
  5. Additional Duties of Customs (commonly known as CVD)
  6. Special Additional Duty of Customs (SAD)
  7. Service Tax
  8. Central Surcharges and Cesses so far as they relate to supply of goods and services
2. State taxes that would be subsumed under the GST are:
  1. State VAT
  2. Central Sales Tax
  3. Luxury Tax
  4. Entry Tax (all forms)
  5. Entertainment and Amusement Tax(except when levied by the local bodies)
  6. Taxes on advertisements
  7. Purchase Tax
  8. Taxes on lotteries, betting and gambling
  9. State Surcharges and Cesses so far as they relate to supply of goods and services
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