|Author: Kailash Kumar 01 Aug 2016 Member Level: Platinum Points : 2 (Rs 2) Voting Score: 0|
Originally the GST is conceived to be a single tax including all central and state indirect taxes and thus eliminate cascading of taxes. Thus the proposed GST will consolidate all the major indirect taxes, including, central excise duty, service tax, state VAT, countervailing duty, special additional duty of customs, octroi and entry tax, purchase tax, luxury tax, taxes on the lottery, betting and gambling, etc.
However, it is not yet clear till the bill is finally passed if the four major state level taxes i.e. tax on petroleum products, electricity duties, excise duty on alcohol, and stamp duty on the immovable property will be a part of GST or not. Perhaps it would be better to let the bill be passed by the Rajya Sabha before speculating on the issue.
Presently taxes on the petroleum products and liquor are shared between the Centre and States, which has led to a cumbersome and complex net of taxes.
|Author: Mahesh 02 Aug 2016 Member Level: Gold Points : 1 (Rs 1) Voting Score: 0|
GST is supposed to unify the current taxation model and reduce the burden of multiple taxes. However the proposed model and the distribution of the GST model will increase the taxes during the transition model. And this is going to increase the taxes on existing products and services. This may result in increase in prices for transportation, fuel and few other industries.
The current model of GST needs a lot of testing and also more variables to test things out. And that is not going to help the situation. It may require some time to process through the financial experts and the business experts. At this current proposed condition the bill is not going to work in favor.