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Understanding GST RSS

GST, Understanding GST -

GST (Goods & Services Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence. What does this mean? What will be its impact? What is the difference between GST and current tax structure? GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’. Let us understand the fundamentals of GST, it is a dual concept tax system. Under this system, tax is administered, collected, and shared by both the Centre and the...

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GST, Understanding GST -

SIn the current regime of indirect tax system, the chain of input credit, at a certain point, is broken. Let’s say Central Sales Tax (CST) applicable on interstate trade is non-creditable, leading to a break in the input credit chain. Similarly, a manufacturer charging excise duty on sale to a dealer causes the chain to break. This leads to taxes forming a part of the product cost. In the year 2005, VAT was introduced with the similar objective to overcome cascading affect (tax on tax). If VAT was designed to eliminate it, how is it different in GST? Yes, VAT eliminated the...

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GST, Understanding GST -

The revised draft model GST law was made available on 26th November, 2016. Key highlights of the revised Draft Model GST Law are categorized into the following sections: What are the changes? What are the new additions? What are the exclusions?   What are the changes? Subject Topic Draft Law- 14th June, 2016 Revised Draft law- 26th November, 2016 Registration Threshold limit Rs 5 Lakhs for North East states   Rs 10 Lakhs for Rest of India Rs 10 Lakhs for Special Category States *   Rs 20 Lakhs for other than Special Category States * Arunachal Pradesh, Assam, Jammu...

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GST, Understanding GST -

August 3rd, 2016 will be recorded as a red letter day in the history of Indian taxation due to the near unanimous passage of 122nd Constitutional Bill in Rajya Sabha, paving the way for roll-out of GST (Goods and Services Tax) in India from 1st of April 2017. Goods and Service Tax Bill has significantly evolved over the past decade and is touted as the single largest tax reform in India since independence. It is estimated to boost GDP by 1.5 to 2%. ‘One India, One Tax’ will be the new reality with GST subsuming over ten indirect taxes and making India a...

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