GST | Goods and Service Tax in India | What is GST?
- Blog|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 5 June, 2021
Latest from Taxmann
Goods and Services Tax (GST) is the biggest indirect tax reform in India. GST will subsume Central Excise Law, Service Tax Law, State VATs, Entry Tax, Luxury Taxes, Octroi etc. Earlier, there were so many taxes which were levied on goods such as Excise, VAR, entry tax, octroi. Similarly, service tax, entertainment tax, luxury tax were levied on services. Now, there will be only a single tax i.e. GST and it will make the dream of One Nation, One Tax feasible.
What is GST in India?
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services. GST is a destination-based tax that is levied only on value addition at each stage because credits of input taxes paid at the procurement of inputs will be available. Thus, the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages
Also Read: Benefits of GST in India
What taxes will be levied under GST?
Since India is a federal country, Centre Government and State Government both have powers to levy taxes. Under GST regime, the Centre and State both have the power to levy GST. Therefore, GST in India is divided into two parts:
-
- Central GST (CGST)
- State GST (SGST)
GST will be divided into two components, one is CGST which is levied by Central Government and other is SGST which is levied by State Government.
However, there will be one more type of GST is Integrated GST (IGST). IGST will be levied on inter-state transactions. Since there are chances that people will get confused in case of transactions between two persons of two different States and there will be difficulty setting off dues of taxes between two States, thus IGST will be levied by the Centre. Now, the Centre will apportion the State’s portion of GST from IGST to the relevant State.
Author Bio: CA Vishal Raheja is a writer and editor for the GST Research and Development Department of Taxmann. He is also alumni of Shree Ram College of Commerce and a qualified UGC-NET
Related Articles:
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
One thought on “GST | Goods and Service Tax in India | What is GST?”
Leave a Reply
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
GST is proposed to be a dual levy where the Central Government will levy and collect Central GST (CGST) and the State will levy and collect State GST (SGST) on intra-state supply of goods or services. The Centre will also levy and collect Integrated GST (IGST) on inter-state supply of goods or services…