Taxation
Goods and Services Tax: Frequently Asked Questions
1. What is Goods and Services Tax (GST)? How does it work? 
The GST is a single indirect tax for the whole nation, which will make India one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
 
Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
 
2. What are the benefits of GST?
 
The benefits of GST can be summarised as under:
 
-- For business and industry:
 
** Easy compliance
** Uniformity of tax rates and structures
** Removal of cascading
** Improved competitiveness
** Gain to manufacturers and exporters
 
-- For central and state governments:
 
** Simple and easy to administer
** Better controls on leakage
** Higher revenue efficiency
 
-- For the consumer:
 
** Single and transparent tax proportionate to the value of goods and services
** Relief in overall tax burden
 
3. Which taxes at the Centre and state level are being subsumed into GST?
 
At the Central level: 
 
Central excise duty, additional excise duty, service tax, additional customs duty (commonly known as countervailing duty) and special additional duty of customs.
 
At the state level: Subsuming of state value added tax/sales tax, entertainment tax (other than the tax levied by the local bodies), central sales tax (levied by the Centre and collected by the states), octroi and entry tax, purchase tax, luxury tax, and taxes on lottery, betting and gambling.
 
4. How will GST be levied?
 
The Central GST (CGST) and the State GST (SGST) would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. 
 
Further, both would be levied on the same price or value unlike state value added tax, which is levied on the value of the goods inclusive of central excise.
 
5. How will imports be taxed under GST?
 
The Additional Duty of Excise and the Special Additional Duty presently being levied on imports will be subsumed under GST. Unlike in the present regime, the states where imported goods are consumed will now gain their share from this Integrated GST paid on imported goods.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Dahyabhai S Patel

10 months ago

What would be the status of taxes like STT, Stamp Duty, Turnover Tax, Swachchha Bharat cess and Krishi Kalyan Cess which are levied on trading of securities?

Pradeep Kumar M Sreedharan

10 months ago

Is it true that potable alcohol, petrol,Real estate are outside the purview of GST?

Emami Ltd's net profit down in Q1, augments production capacity
Fast moving consumer goods major Emami Ltd. on Wednesday reported a 34.59 per cent dip in its net profit to Rs 56.65 crore in the this fiscal's first quarter ended June 30 compared with Rs 86.61 crore in the corresponding period last fiscal.
 
The company is setting up a third manufacturing unit at Guwahati in Assam under a mega project. "The total planned outlay for the project is Rs 300 crore, out of which the company has already invested Rs 195 crore. The unit is expected to commence operations by FY17," said a company statement.
 
The net profit was impacted due to amortisation of Kesh King intangibles. 
 
"PAT (profit after tax), however, was impacted by Rs 60 crore, mainly because of amortisation of Kesh King intangibles. However, cash profits at Rs 128 crore grew by 18 per cent during the quarter," it said.
 
Overall, the domestic business delivered a strong topline growth of 21 per cent and CSD business grew by 12 per cent.
 
While the turnover at Rs 644 crore in the first quarter grew by 20 per cent, EBIDTA grew 49 per cent to Rs 147 crore over the corresponding quarter in previous year.
 
International business grew by 14 per cent during the quarter despite economic challenges in the overseas markets led by robust growth in Bangladesh and Gulf Cooperation Council.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Supreme Court asks Sahara chief to deposit Rs300 crore
The Supreme Court on Wednesday asked Sahara chief Subrata Roy to deposit another Rs300 crore to continue to stay on parole.
 
The court rejected Roy's plea to be permitted to sell Sahara's property to raise money to return investors' deposits collected in 2008 and 2009 through OFCDs (Optionally Fully Convertible Debentures).
 
The bench, headed by Chief Justice T.S. Thakur, gave the Sahara chief time till September 15 to deposit the money, orally observing that failing this he will be back in Tihar Jail here.
 
The next date of hearing has been fixed for September 16.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

din.neer

9 months ago

When Chandras, the owners of Unitech Ltd, will go behind bars, who failed to pay more than 500 croes of thousands of fixed depositors ?

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