Breaking News: India begins its tryst with GST
Jul 1, 2017, 00:00 IST
The Indian Government has finally rolled out nation’s biggest tax reform, the Goods and Services Tax (GST).
From now, India is unified under one tax system, transforming the indirect taxation landscape in the country.
The rollout was announced at the Central Hall of the Parliament, where President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi, among other dignitaries.
The Govt said the GST will benefit all the stakeholders namely industry, government and consumer.
GST will end multiple taxes levied by Centre and the State Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry Tax, Luxury Tax and Entertainment Tax etc. This will lower the overall tax burden on the consumer and will benefit the industry through better cash flows and working capital management. Currently, 17 State and Central levies are being applied on goods as they move from one State to the other.
It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive, giving a major boost to ‘Make in India’ initiative.
The GST Council has decided a four-slab tax rate structure of 5%, 12%, 18% and 28% has been adopted.
A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28% for payment of compensation to the states.
For a smooth roll out of GST, training programmes were conducted nation-wide.
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From now, India is unified under one tax system, transforming the indirect taxation landscape in the country.
The rollout was announced at the Central Hall of the Parliament, where President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi, among other dignitaries.
The Govt said the GST will benefit all the stakeholders namely industry, government and consumer.
GST will end multiple taxes levied by Centre and the State Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry Tax, Luxury Tax and Entertainment Tax etc. This will lower the overall tax burden on the consumer and will benefit the industry through better cash flows and working capital management. Currently, 17 State and Central levies are being applied on goods as they move from one State to the other.
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The GST Council has decided a four-slab tax rate structure of 5%, 12%, 18% and 28% has been adopted.
A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28% for payment of compensation to the states.
For a smooth roll out of GST, training programmes were conducted nation-wide.