Recent Updates on GST News and GST Tax System

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 centre 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 Centre 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.