GST Tax Implementations For The Benefit Of the Nation

As the citizens of any country there are certain duties which are applicable to every citizen of that country. The fundamental duty of any citizen of a particular country is to pay taxes on time so that they can get all the services from the government. There are various kinds of taxes like service tax, income tax, value added tax, sales tax, etc. Payment of taxes on time is really very important as it helps the government to function properly. In Indian parliament one new tax bill was introduced in 2014 and passed by the government and it is popularly known as “The Constitution Bill” or The “GST Bill” 

 What is GST System?

GST or the Goods and Services Tax are already presented in many countries and in India it was introduced in the Lok Sabha in December 2014 which will be implemented from April 2016. The main purpose to introduce such bill in the Indian parliament was to remove number of indirect taxes and also accelerate India’s GDP growth up to 1.7%. In details of GST news this is targeted to be a simple and efficient system of indirect taxation which is already adopted by number of other countries. This system is mainly based upon VAT system of tax implemented by states and it will also modify the present complex tax system and will also help in development of national market. This tax system will be implemented in two stages, one by the center and the other by the state. Excise duties, service tax, entertainment tax, state vat, etc. will all be under this GST Tax. 

Proposals of GST Tax System:

The GST Tax system was proposed in December 2014 and the main features of this proposed bill are as follows. 

• The GST rates would typically be in between 15-20% in India, it would bring down the tax rate but eventually it would increase the number of assesses by 5-6 times.
  

• It would have two components namely Center GST which would be handled by the central government and secondly State GST which would be handled by the state government. 

This Tax system will have its impact on dealers and retailers. No doubt this taxation system would benefit the dealers in India as it will create business friendly environment. It is proposed that when any business registers with the tax authorities it would be provided a unique identification code and the entire business would be correlated with this code and the business would be legally recognized. A lot is being expected from this tax system and get benefited from this kind of tax system.

A Brief Summary about What Is GST Along With Its Advantages

Often, people have queries like what is GST. So, the Goods and Services Tax (GST) can be said as the value added tax which replaces all indirect taxes that are levied on various services and goods by both the Central and State Government after it is implemented. It is used to consolidate all the State economies. It focuses upon creating single, undivided and cooperative market which makes the economy powerful and stronger. It imposes tax on manufacture, consumption and sale at the national level. It is consolidated tax based on a uniform rate and usually remains fixed. It is usually paid at the final point of consumption.

GST is usually divided into two parts:

• The Central Goods and Services Tax (CGST)
  
• The State Goods and Services Tax (SGST)

GST includes central excise duty, service tax, additional excise duty and state VAT entertainment tax. It is adopted by 160 countries around the world. It focuses on replacing the existing tax structures of centre and state taxes. GST rates are usually between 15 per cent and 20 per cent. After GST has been introduced, the number of assesses have increased by 5 to 6 times. The substances which do not fall under GST are petroleum products, tobacco and alcohol.

Advantages of GST:

There are many benefits of GST. Some of them are:

•  It makes the taxation burden to split equally between services and manufacturing.
•  It is levied at the final destination of use of goods and services.
• It helps in removing economic distortion and developing the market.
• It builds corruption free tax administration.
• It promotes more and more exports.
• It creates more employment opportunities.

Impact of the GST in Various Sectors and Industries:
The impact of GST usually occurs on dealers and retailers, country’s economy, service sectors, goods and services.

Impact of GST on Dealers and Retailers:

Retailing plays a major part in a country’s economy as it is a likable option of the common people. The introduction of GST makes up the additional cost, which eats up the money of retailer and dealers. It recognises the manufacturers and service providers only.

Impact of GST on the Country’s Economy:

GST increases the imports and helps in fighting the export competitiveness. It reduces the compliance cost for tax payers up to a large extent. It also reduces overall tax burden on goods. It has a different approach for duty cuts and tax reliefs.

Overview and Viewpoint on Goods and Services Tax GST

The starting point in bearing in mind the goods and services tax is that the process of the tax honestly or indirectly affects each transaction which happen on or after 1 July 2000 and also has consequences for numerous agreements which were going into long before the date of completion of the attacks. The GST replaces a number of accessible taxes, most notably the wholesale sales tax. The exclusion of the wholesale sales tax, together with the beginning of the GST, affected costs of all goods and services. 

As the GST has such a wide reaching effect, or practitioners, whether focusing on income law, commercial law or otherwise, should have at least a general considerate of the operation of the GST audit serviced identified as a matter on which their clients might seek further advice should they opt to do so.

Just what is Goods and Services Tax?

Goods and services tax GST is a tax on goods and services with wide and constant series of set-off gain from the manufacturer point and the service supplier point up to the retail level. This is really a tax only on value inclusion at every stage and a distributor at every level is allowed to set-off through a tax credit system. Within GST organization, all various levels of manufacture and distribution may probably be rendered as a mere tax pass through and the tax essentially sticks on last consumption within the taxing authority.

Purpose GST

a) The probability of the tax solely lands for domestic use.

b) The presentation and equity of the system are exploited.

c) There must be no export of taxes throughout taxing authority.

d) The market must be included into a single open market.

e) It improves the cause of helpful federalism.

Usually, the GST bill may be expressed as a tax on the supply of goods and facility in Australia. There are a number of rules which have to be considered when considering exacting transactions. The crux of the GST might be found in legislation on the new tax system which was realized in 1999, the transitional legislation which was linked with this, the goods and services tax management legislation which came in the similar year, the Australian business number legislation and the goods & services tax system which were all employed in 1999. GST legislation and the GST transition legislation get Royal assent in a July 1999. 

On 22 December 1999, the alter legislation was passed, making important amendments and additions to the GST legislation & the Goods & services tax GST alteration legislation.