GST- a short write-up

Introduction of GST from July 2017 has revolutionized the indirect tax
structure of India. Pre – GST indirect tax structure was characterized by
multiplicity of taxes, cascading effect of taxes resulting in increase price
of goods and services, multiplicity of tax rates, complex compliance of
different sets of law in Center and States and above all absence of
credit facilities for setting off the tax burden throughout the supply
chain.
GST is a comprehensive value added tax on goods and services,
collected on each stage of the supply chain and a destination based
consumption tax. The tax burden is ultimately borne by the consumer
.GST is applicable to all goods and services except alcoholic liquor for
human consumption.

GST has subsumed as many as 17 indirect tax laws in its fold and has
introduced ”Supply” as the taxable event thereby extending the tax
base manifolds. Intra state supplies will attract Central tax (CGST) and
State tax(SGST) while Inter- State supplies will attract integrated
tax(IGST). The most important feature of GST is the input tax credit
mechanism. The continuous chain of set- off from the original
producer’s point and service provider’s point up to the retailer’s level is
established which reduces the burden of cascading effect.GST has led
to mitigation of cascading of taxes, uniformity of tax rates and
structures, easy and reduced cost of compliance for the tax payers,
improved competitiveness, greater transparency in tax administration
and ease of doing business.

GST has transformed India from Political Union to Economic Union.

India is now truly “One Nation, One Tax. One Market”.