WELCOME TO MY SITE - GSTINIDA.COM.
INDIA'S INDIRECT TAX STRUCTURE STARTS AFRESH...
INDIAN ECONOMY ... WHICH IS FAMOUSLY GROWING AHEAD, BREACHING ALL NEW PEAKS , NOW AWAITS FOR A COMPELLING AND ENERGETIC TURN-AROUND IN ITS TAXATION FRAMEWORK , GST - WHICH HAS INBOUND ABILITY TO HELP GOVERNMENT OF INDIA TO ENHANCE REVENUES AND MAINTAIN THE DEMOCRATIC CONSENSUS.
THIS SITE ENABLES THE WHOLE INDIAN NATION AND THEIR ASSOCIATED FRIENDS TO BE INFORMED WITH ALL THE NEWS AND UPDATES WHICH TAKES PLACE IN THE FORMATION OF IMMINENT GOODS & SERVICES TAX (GST) REGIME.
THERE HAS BEEN LOT OF EAGERNESS ON THE IMPLEMENTATION OF GOODS AND SERVICES TAX IN INDIA AND I HOPE YOU ALL COME FORWARD AND JOIN HANDS, KEEP YOUR SELF VIGILANT ENOUGH, KEEP THIS SITE VISITED REGULARLY, GIVE IN YOUR VIEWS AND INPUTS SO THAT GST WILL BECOME AS SUCCESSFUL IN INDIA, MUCH MORE THAN 150 COUNTRIES WHO HAS ALREADY IMPLEMENTED THEM WITHOUT ANY HESITATION.
THE STORY HAS HAD MANY A TWIST & TURN, BUT IT ADD'S UP TO NOTHING LESS THAN A REVOLUTION
What type of GST is proposed for India?
India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction.
All goods and services, barring a few exceptions, will be brought into the GST base. There will be no distinction between goods and services.
Which other nations have a similar tax structure?
Almost 140 countries have already implemented the GST. Most of the countries have a unified GST system. Brazil and Canada follow a dual system where GST is levied by both the Union and the State governments.
France was the first country to introduce GST system in 1954.
Will this be an extra tax?
It will not be an additional tax. CGST will include central excise duty (Cenvat), service tax, and additional duties of customs at the central level; and value-added tax, central sales tax, entertainment tax, luxury tax, octroi, lottery taxes, electricity duty, state surcharges related to supply of goods and services and purchase tax at the State level.
What will be the rate of GST?
The combined GST rate is being discussed by government. The rate is expected around 14-16 per cent. After the total GST rate is arrived at, the States and the Centre will decide on the CGST and SGST rates.
Currently, services are taxed at 10 per cent and the combined charge indirect taxes on most goods is around 20 per cent.
Will goods and services cost more after this tax comes into force?
The prices are expected to fall in the long term as dealers might pass on the benefits of the reduced tax to consumers.
Why are some States against GST; will they lose money?
The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready by April 2010 to implement GST. States have sought assurances that their existing revenues will be protected.
The central government has offered to compensate States in case of a loss in revenues.
Some States fear that if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States.
However, backward and less-developed States could see a fall in tax collections. GST could see better revenue collection for some States as the consumption of goods and services will rise.
How will GST be implemented?
The empowered committee is likely to finalize the details of GST by August. But States have to sort out several issues like agreement on GST rates, constitutional amendments and holding talks with industry associations. Experts feel the drafting of legislation and the implementation of law will take time.
What are the items on which GST may not be applied?
Alcohol, tobacco, petroleum products are likely to be out of the GST regime.