Are you ready for GST? Do you understand the concept of it at all? The present method to imply tax on goods and services were first introduced on the 1st of July 2017. It is already active in the markets. Hence, commodities and services all are being bought and sold at this new taxation system.
With the addition of this method of tax, that is the present method to imply tax, is it affecting you? Being educated about the current taxation only going to benefit you. As of now, one may not be aware of the many aspects of this taxation system. So here is a guide.
Everything about GST Bill
Origin of goods and services tax
This very system is not a new concept. GST Bill was first proposed by Prime Minister Atal Bihari Vajpayee and his panel of advisors. It was in the year of 1999, and hence it first designed and formed.
However, the proposal was rejected back then and did not come into consideration before the year 2010.
Goods and services tax India have come in as a replacement of the many other components of tax namely,
- additional customs duty
- state-level value added tax
- central excise duty
- services tax
Even the inter-state goods transportation levies have been cut down as a result of this taxation system.
Every product or service has a central goods and services tax and state goods and services tax. Thus this is the best effective method to cut down on the tax percentage. As the total percentage of tax is lesser than before, you are actually saving up money on tax rates.
As to whether this structure of taxation is working or not is still uncertain. Calculation shows that this tax form is going to be of aid for the commoners. Whereas many people are boldly criticizing the use of goods and services tax, many are favorable towards this taxation system. What will be your take towards this system of taxation then?