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Wednesday, 19 July 2017 06:00

GST Bill Tax Rates

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ONE Nation & ONE Tax - GST

What is GST: GST is nothing but Goods and Services Tax which is an indirect tax applicable throughout India which replaced by multiple taxes system levied by the state and central governments. GST Bill was introduced as The Constitution (One Hundred and First Amendment) Act 2017. The GST Tax is governed by the GST Council which is headed by the Finance Minister of India. Under GST Council, goods and services are taxed at the following rates, 0%, 5%, 12% and 18%. As we all know that there is a special 0.25% GST Rates on rough precious and semi-precious stones and 3% on gold. In addition to that a cess of 15% or other rates on top of 28% GST applies on very few items like aerated drinks, luxury cars and tobacco products.

Goods and Services Tax (GST) to be India's biggest tax reform in 70 years of independence which was finally launched on the midnight of 30 June 2017. Other opposition parties reportedly found that there is no difference between the existing taxation system and GST, and therefore the government was trying to merely rebrand the current taxation system but made it worse for common people by increasing existing rates on common items and reducing rates on luxury items.

GST

Advantages of GST:

  • Removes cascading Taxes
  • Higher threshold for registration
  • Composition benefits for small businesses
  • Very simple procedure under GST
  • Minimal compliances
  • Higher efficiency
  • Regulates all unorganized sectors

Disadvantages of GST:

  • Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers
  • Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem
  • The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate

For GST membership use the following link 24/7 and all 365 days:

http://www.cbec.gov.in/htdocs-cbec/gst/index

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