Gone for good: GST will push these taxes into oblivion

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The Parliament yesterday passed the GST Constitutional Bill, which would pave the way for, some say, the most radical tax reform since Independence.

Starting April 1 next year, the government will eliminate most state- and central-level taxes and levies and replace them with a single goods and services tax.

The benefits: it will boost compliance by subsuming the country’s cumbersome tax structure, promote inter-state trade by doing away with differential tax rates and unify India as one national marketplace.

The GST will follow primarily a dual tax struture: some transactions will attract central GST while others will be levied state GST. There’s a third tax, integrated GST, on inter-state transactions.

The following table outlines the indirect taxes that will be subsumed when GST comes into effect.

Source: http://www.moneycontrol.com/news/economy/gone-for-good-gst-will-pushtaxes-into-oblivion_7228401.html

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