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  • Category: India

    A discussion on Goods and Services Tax: GST

    GST is going to be implemented soon in India. What does GST actually mean to us? People (including me) are in confusion as to what GST actually is. Presently there are more than 100 countries where GST is already implemented and trade between these countries is said to be more convenient. Why is it so? How will we be affected by its implementation? What are its benefits and drawbacks? Can we discuss?
  • #596434

    By the version of General Sales Tax or GST it implies that uniform sales tax across the country. Either too each Indian state was given the liberty to impose tax and get their revenues. But now the central government would only levy GST and the proceeds from that would be shared with the state governments as per the population of each state. For example the state tax on petrol in Telangana is high. At least we shall get rid of those high taxes and what ever central tax will charged to us. Like wise many products would become cheaper for customer and the benefit is huge.

    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #596452
    Sir, what do actually GST mean, in newspaper, I saw goods and services tax, you said General Sales Tax and one more I heard was Global Services Tax? I'm being confused.

  • #596469
    What I meant is right. General Sales Tax. That means uniform tax structure on products and services totally controlled by the central government with no say of the state governments. And the proceeds distributed according to population of each state for developmental purpose.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #596496

    Mr. Lovish Raheja, GST means Goods and Services Tax only but not General Sales Tax as said by Mr. K.Mohan.

    It is an uniform indirect tax which is going to be levied through out the country on all taxable goods and services. The taxes as of now we are paying are of various types and they are levied from both centre and states. States are levying taxes like Sales Tax, Luxury Tax, Entertainment Tax, Lottery Tax, Advt. Tax, etc. Centre is also levying taxes like Central Excise Tax, Central Sales Tax, Service Tax, etc. Apart from these two Value Addition Tax (VAT) is also being levied by the concerned governments.

    To get rid of all these kinds of various taxes, a uniform tax policy which is being introduced by the centre is GST i.e. Goods and Services Tax.

  • #596497
    Thank you sir for the knowledge, has it any drawbacks also?
    Or it is only beneficial for all of us. What is your personal review on this?

  • #596499
    In continuation to my previous reply..

    Initially certain products like petroleum and petroleum products, alcohol related items are being exempted from the orbit of GST in which maximum revenue is being generated and the states do not want to lose them. Even after migrating to the GST, the losses, if any, are going to be recouped by the centre for the coming five years.

  • #596500

    For any kind of new implementation, initial hiccups would always be there to trouble to smooth outflow. In my personal opinion it is going to be beneficial to the normal public. For example: If a product is bought from the local market, on that product we have paid so many taxes as I said earlier like CST, VAT, Service Tax, etc. and all these taxes are taxes on taxes. Once GST is implemented, if a product is bought, only one kind of tax i.e. GST only we have paid. Thereby customer would be benefited.

    Of course, it is a vast subject. The percentage of GST which is going to be levied in three to four categories. Product categorization would be done. Some items may be dearer than what we are paying now.

  • #596563
    GST means Goods and Services Tax. All indirect taxes like Sales Tax, Luxury Tax, Entertainment Tax, Lottery Tax, Advt. Tax, etc will be eliminated and only one tax that is GST will be levied from 1 st July 2017 onwards. GST is a great tax reform and simplyfication of tax process. tax avoidance will not be possible after GST, so tax collection will increase despite the low rate. Tax on the tax will be eliminated on the product and services. Now we are paying about 33% tax on a new medium price car purchase ( excise duty 15 %+ vat 14.5%+ect). After GST only 18% GST is to be paid. Thus car will become 15 % cheaper. Likewise other products. Some product may be dearer which has low tax now.
    The greatest wealth in this world is mental peace and good health.

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