Indirect Taxation system has undergone a sea change in the last three decades — through Modvat, Cenvat, Service Tax and VAT. Though, concept of value addition with input set off facility has come to stay, still issues of cascading effect and multiplicity of taxes persist in some pockets, resulting in duplication & distortion.
To iron out above deficiencies, the Legislature has announced to subsume various present levies under Indirect Tax system within a dual structure consumption based tax, encompassing both goods & services at all levels, namely: Goods & Service Tax GST is Comprehensive Tax Mechanism where in all major indirect taxes are clubbed into one, whether they are levied on Goods or Services.
The aim is to have ONE INDIRECT TAX for the whole nation, which will make India a unified common market
In India, due to non consensus between Central and State Government, the proposal is to introduce a Dual GST regime i.e. Central GST and State GST, and Integrated GST for inter- state consumption – Consensus reached on the issue of dual control in the Council Meeting on January 16, 2017.
MULTIPLE TAX REGIME & TAXES SUBSUMED
For any queries relating to GST, please send your enquiry to firstname.lastname@example.org
© 2018 CA Chandan Agarwal. All rights reserved.