The most debatable issue of 2016 is now taking positive shape, when Finance Minister Arun jaitely has passed the implementation of GST bill on Saturday in GST Council. "The decision was animous and supported by all states says, Jaitely. He also added that 1st July 2017 will optimistically looks like possible date for implementation of GST.
What is GST
1-GST is a indirect tax on manufacture, sale and consumption of goods and services throughout India, which will abolish taxes levied by the central and state governments.
2- The GST will put an end to various taxes likes VAT, CST, excise which are collected at different stages.
3-The GST will be levied at each stage of purchase and sale by the input credit method.
4- In GST bill there is no difference between a Good and Services, both will be taxed equally. It will also help to reduce the confusion in determining difference between goods and services.
5- With implementation of GST there will be reduction in tax rates as prior to GST the tax rates would lie between 25%-30% because of hidden tax the rates were high but now it will be comparatively reduced.
6-The GST-registered businesses will be able to claim tax credits to the value of GST they have paid on the purchase of goods or services as part of their normal and Daily business activities.
7-The Administrative responsibility will generally rest on a single authority to levy tax on goods and services.
8-Exports would be considered as zero-rated supply and imports would be levied the same taxes as domestic goods and services adding to the destination principle.
9- By Adding several Central and State taxes into a single taxes, it will avoid double taxation facilitating a smooth common national market.
10- GST Will also help in corruption free administration.
This bill is a reform in Indian tax system with making its place to having many positive aspects, people are looking forward for its implementation and now finally 1st July will be its implementation day.