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.
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.
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