A lot of taxes have accumulated in the ambit of Goods and service tax which has been termed as the most ambitious tax regime and holds the capability to fuel the economy of the nation. The main purpose of the GST is to curb various taxes levied currently on goods and service across states and to rebuilt in ‘one tax one nation’ mode. Here we will talk about the indirect taxes that are included in GST and its benefits in the GST regime.
The taxes which are being included in Central GST are:
- Additional Customs Duty, commonly known as Countervailing Duty (CVD)
- Central Excise Duty (CENVAT)
- The Excise Duty levied under the Medicinal and Toiletries Preparations (Excise Duties) Act 1955
- Additional Excise Duties
- Special Additional Duty of Customs 4% (SAD)
- Service Tax
In State GST, there are various taxes which includes:
- Luxury tax
- Octroi and Entry Tax
- Purchase Tax
- VAT / Sales tax
- Entertainment tax (unless it is levied by the local bodies)
- Taxes on lottery, betting, and gambling
- State Cesses and Surcharges in so far as they relate to supply of goods and services
Taxes which are not included in GST:
- Basic Customs Duty
- Exports Duty
- Road & Passenger Tax
- Toll Tax
- Property Tax
- Stamp Duty
- Electricity Duty
Benefits of GST:
In the known perspective, the goods and service tax has the potential to bring lot many benefits to the nation and industries associated within. The goods and service tax has lot many advantages which can be ascertained by given points:
A single platform for both SGST and CGST is a great concept to fulfill the taxation process as the taxpayers will be able to return the taxes with a single click which will surely count as productive and feasible.
# Single Tax Rate:
The unity of tax rates has brought a lot of cleanliness into the system and likewise reduced the paperwork. The main advantage of this is that it will definitely narrow down the complexity and in turn will give fast and secured manner of the transaction.
# Reduce cascading effect:
One of the main benefits of the Goods and service tax in India that it will remove the value addition of every product and therefore remove the cascading effect which burdens the final price of the product.
# Control tax evasion:
The online method of tax framework will certainly bring a transparency and will also find out the source of any tax leakage as the transactions can be monitored and will improve in helping overall tax collection.
Get GST Information on your fingertips:
GST Helpline app is an amazing option which share and embrace the knowledge of current scenario of GST and its applicability. The app has various features which improve the users share by which users can indulge in the movement of GST, attain each and every detail and can also login to their GST Ids as per the specially secured feature of the app.