What is GST

GST or Goods and Service Tax is common tax system proposed by the government. As the name suggest it is a common tax for Goods and Services. In simple words today we are paying multiple taxes such as excise duty, custom duty, value added tax, octroi, service tax etc. Once GST is implemented all these taxes will be replaced by a single tax which is called as GST. GST rate is expected to be 18-20% which is lesser than tax burden of indirect taxes.

Type of GST

Tax is now divided in 2 parts:

Central Taxes

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 Cess

State Taxes:

1. State VAT
2. Central Sales Tax
3. Luxury Tax
4. Entry Tax
5. Entertainment and Amusement Tax
6. Taxes on advertisements
7. Purchase Tax
8. Taxes on lotteries, betting and gambling
9. State Surcharges and Cess

Customer Benefits

• Elimination of Multiple Taxes
• Saving more Money
• Easy Documentation and Return Filing
• Tax Credit Benefit
• Cascading Effect reduction
• More Employment
• Increase in GDP
• Reduction in Tax Evasion
• More Competitive Product
• Increase in Revenue