Gone for good: GST will push these taxes into oblivion


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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