Pages

Total Pageviews

Monday, May 11, 2015

Goods and Services Tax(GST) - Facts

The existing central taxes include excise duty, service tax and additional customs duties, the state taxes comprise of entertainment tax, luxury tax, lottery taxes, electricity duty, central sales tax, octroi, value added tax (VAT). The GST will dissolve all the taxes into one making India a single, unified national market.

GST will help corporates by simplifying taxation - it will reduce tax on tax, reduce tax compliance burden

For consumers, GST will reduce prices of goods and services in the long run

As per the GST Bill, the states where goods originate can levy 1 per cent additional tax over GST to make up for any revenue loss for the first two years

The Centre and states have been working on a new Revenue Neutral Rate (RNR), which is currently pegged at 27 %. RNR is one at which there will be no revenue loss to states after GST implementation.

No comments:

Post a Comment