Advantages of GST Free E Book
GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect tax levies into a single tax, except customs (excluding SAD) replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration.
One of the reasons to go the GST way is to facilitate seamless credit across the entire supply chain and across all States under a common tax base. The current framework allows limited inter-levy credits between CENVAT (tax on manufacture) and service tax. However, no cross credits are available across these taxes and the sales tax/VAT paid (on input) or payable (on output). Introduction of GST would thus rationalize the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer.
Example: - A product whose base price is Rs.100 and after levying excise duty @ 12% value of the product is Rs. 112. On sale of such goods VAT is levied @ 12.5% and value to the ultimate consumer is Rs. 126. In the proposed GST system on base price of Rs.100 CGST and SGST both will be charged, say @ 8% each, then the value to the ultimate consumer is Rs. 116. So, in such a case the industry can better compete in global environment.
Therefore, GST is a broad based and a single comprehensive tax levied on goods and services consumed in an economy. GST is levied at every stage of the production distribution chain with applicable set offs in respect of the tax remitted at previous stages. It is basically a tax on final consumption. To put at a single place, GST may be defined as a tax on goods and services, which is leviable at each point of sale or provision of service, in which at the time of sale of goods or providing the services GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect tax levies into a single tax, except customs (excluding SAD) replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration.
One of the reasons to go the GST way is to facilitate seamless credit across the entire supply chain and across all States under a common tax base. The current framework allows limited inter-levy credits between CENVAT (tax on manufacture) and service tax. However, no cross credits are available across these taxes and the sales tax/VAT paid (on input) or payable (on output). Introduction of GST would thus rationalize the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer.
Example: - A product whose base price is Rs.100 and after levying excise duty @ 12% value of the product is Rs. 112. On sale of such goods VAT is levied @ 12.5% and value to the ultimate consumer is Rs. 126. In the proposed GST system on base price of Rs.100 CGST and SGST both will be charged, say @ 8% each, then the value to the ultimate consumer is Rs. 116. So, in such a case the industry can better compete in global environment.
Therefore, GST is a broad based and a single comprehensive tax levied on goods and services consumed in an economy. GST is levied at every stage of the production distribution chain with applicable set offs in respect of the tax remitted at previous stages. It is basically a tax on final consumption. To put at a single place, GST may be defined as a tax on goods and services, which is leviable at each point of sale or provision of service, in which at the time of sale of goods or providing the services the seller or service provider may claim the input credit of tax which he has paid while purchasing the goods or procuring the service.
Internationally, GST is a single levy for all transactions related to goods and services. In India, however, currently the power to prescribe the taxation framework, and levy and collect taxes has been segregated between the Centre and States under the Constitution.
For resolving disputes regarding GST, its implementation etc. a GST Council would be setup. Given this uniqueness, learnings of other countries cannot be directly implemented in India.
- See more at: http://www.simpletaxindia.net/2014/12/meaning-of-gst-advantages-of-gst-free-e.html#sthash.B1CHozTS.dpuf
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MENU OF GST E BOOK:
A-1 Indirect Tax Structure in India – An Introduction
A-2 What is GST, How it Works & its Advantages
A-3 Models of GST
A-4 Expected Model of GST in India
A-5 Revenue Neutral Rate (RNR)
A-6 Taxes/Duties to be Subsumed in GST
A-7 Inter-State Transactions and GST
A-8 Present Taxation vs. GST
A-9 Roadmap to GST in India
A-10 Challenges before the Government & Transitional Issues
A-11 Impact on Key Industries/Sectors
A-12 Expectations of Industry from GST
A-13 GST in other Countries
A-14 GST- Role of Chartered Accountants
B-1 Working Paper [No. 1/2009-DEA] on Goods & Services Tax
B-2 ICAI’S Concept Paper - GST Model for India – Suggestions
B-3 Relevant Articles of the Constitution of India
B-4 Entries in Schedule VII to the Constitution of India
(Relating to Indirect Taxes)
C-1 First Discussion Paper on Goods and Services Tax in India
CLICK HERE TO GET E BOOK OF NEW GST 2014
GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect tax levies into a single tax, except customs (excluding SAD) replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration.
One of the reasons to go the GST way is to facilitate seamless credit across the entire supply chain and across all States under a common tax base. The current framework allows limited inter-levy credits between CENVAT (tax on manufacture) and service tax. However, no cross credits are available across these taxes and the sales tax/VAT paid (on input) or payable (on output). Introduction of GST would thus rationalize the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer.
Example: - A product whose base price is Rs.100 and after levying excise duty @ 12% value of the product is Rs. 112. On sale of such goods VAT is levied @ 12.5% and value to the ultimate consumer is Rs. 126. In the proposed GST system on base price of Rs.100 CGST and SGST both will be charged, say @ 8% each, then the value to the ultimate consumer is Rs. 116. So, in such a case the industry can better compete in global environment.
Therefore, GST is a broad based and a single comprehensive tax levied on goods and services consumed in an economy. GST is levied at every stage of the production distribution chain with applicable set offs in respect of the tax remitted at previous stages. It is basically a tax on final consumption. To put at a single place, GST may be defined as a tax on goods and services, which is leviable at each point of sale or provision of service, in which at the time of sale of goods or providing the services GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect tax levies into a single tax, except customs (excluding SAD) replacing multiple tax levies, overcoming the limitations of existing indirect tax structure, and creating efficiencies in tax administration.
One of the reasons to go the GST way is to facilitate seamless credit across the entire supply chain and across all States under a common tax base. The current framework allows limited inter-levy credits between CENVAT (tax on manufacture) and service tax. However, no cross credits are available across these taxes and the sales tax/VAT paid (on input) or payable (on output). Introduction of GST would thus rationalize the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer.
Example: - A product whose base price is Rs.100 and after levying excise duty @ 12% value of the product is Rs. 112. On sale of such goods VAT is levied @ 12.5% and value to the ultimate consumer is Rs. 126. In the proposed GST system on base price of Rs.100 CGST and SGST both will be charged, say @ 8% each, then the value to the ultimate consumer is Rs. 116. So, in such a case the industry can better compete in global environment.
Therefore, GST is a broad based and a single comprehensive tax levied on goods and services consumed in an economy. GST is levied at every stage of the production distribution chain with applicable set offs in respect of the tax remitted at previous stages. It is basically a tax on final consumption. To put at a single place, GST may be defined as a tax on goods and services, which is leviable at each point of sale or provision of service, in which at the time of sale of goods or providing the services the seller or service provider may claim the input credit of tax which he has paid while purchasing the goods or procuring the service.
Internationally, GST is a single levy for all transactions related to goods and services. In India, however, currently the power to prescribe the taxation framework, and levy and collect taxes has been segregated between the Centre and States under the Constitution.
For resolving disputes regarding GST, its implementation etc. a GST Council would be setup. Given this uniqueness, learnings of other countries cannot be directly implemented in India.
- See more at: http://www.simpletaxindia.net/2014/12/meaning-of-gst-advantages-of-gst-free-e.html#sthash.B1CHozTS.dpuf
MENU OF GST E BOOK:
A-1 Indirect Tax Structure in India – An Introduction
A-2 What is GST, How it Works & its Advantages
A-3 Models of GST
A-4 Expected Model of GST in India
A-5 Revenue Neutral Rate (RNR)
A-6 Taxes/Duties to be Subsumed in GST
A-7 Inter-State Transactions and GST
A-8 Present Taxation vs. GST
A-9 Roadmap to GST in India
A-10 Challenges before the Government & Transitional Issues
A-11 Impact on Key Industries/Sectors
A-12 Expectations of Industry from GST
A-13 GST in other Countries
A-14 GST- Role of Chartered Accountants
B-1 Working Paper [No. 1/2009-DEA] on Goods & Services Tax
B-2 ICAI’S Concept Paper - GST Model for India – Suggestions
B-3 Relevant Articles of the Constitution of India
B-4 Entries in Schedule VII to the Constitution of India
(Relating to Indirect Taxes)
C-1 First Discussion Paper on Goods and Services Tax in India
CLICK HERE TO GET E BOOK OF NEW GST 2014
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