Goods and Services Tax (GST) bill covers the Goods and Services Tax and shall be the biggest indirect tax reform providing a uniform and simplified way of Indirect taxation in India.Once introduced it will replace a number of other taxes like VAT,CST,Service tax,CAD,SAD, Excise,Entry tax,purchase tax etc. This might have a positive impact on GDP of India and help to boost the Indian economy.
Dual system of GST includes :
• SGST or State GST – collected by State Government.
• CGST or Central GST – collected by Central Government.
• IGST or Integrated GST – collected by Central Government.
Main Advantages of GST :
• A unified indirect tax system.
• Reduction in manufacturing cost.
• It will replace other taxes like VAT,CST,Service tax,CAD,SAD, Excise,Entry tax,purchase tax etc.
• Less complex tax system.
• Positive Impact of GST :
Almost 140 countries have already implemented the GST including Australia, Canada,Germany,Japan and Pakistan.