New Single Nation Indirect Tax System will be imposed from 1st July of 2017

8 months ago SANJEET DWIVEDI 0

Good and Services Tax(GST) is new single nation indirect tax system.  It will be imposed from 1st July of 2017.

The general public of India is though awarded with the preparation time of around two-and-a- half month as they ar allowed to file their first return till 15th of September 2017.

All state except Jammu and Kashmir and Kerala have enacted the State Good and Services Tax(SGST) laws. Kerala is about to clear SGST state law soon.

As per special status of Jammu and Kashmir, Jammu Kashmir will consider and clear its state GST law with due consideration and its separate special process.


What is an indirect tax?

Indirect tax is not a directly levied tax on the taxpayers.

Indirect taxes include service tax, sales tax, custom, excise duties, VAT, MODVAT, CENVAT, Goods & Services tax etc.


Trick to remember indirect taxes

Trick: Excuse Me

  1. Ex- Excise tax
  2. Cu- Custom tax
  3. Se- Service tax
  4. M- Market tax/vat
  5. E- Entertainment tax


What is Good and Services Tax (GST)?

Good and Services Tax(GST) is one indirect tax reform introduced to make India one unified common market.

GST is a tax only on value addition done at each stage of good and services supply from the manufacturer till the consumer.

The final consumer will bear the good and services tax for the last dealer’s service in the supply chain.

GST is being introduced based on the report of the Kelkar Task Force on indirect taxes.


What are the benefits of Good and Services Tax (GST)?

There are the numerous benefits of Good and Services Tax (GST). These are as follows –

  1. Easy compliance for business and industry,
  2. Uniformity of tax rates and structures,
  3. Removal of cascading of taxes,
  4. Improved competitiveness,
  5. Gain to manufacturers and exporters,
  6. Simple and easy to administer,
  7. Better controls on leakage,
  8. Higher revenue efficiency,
  9. Single and transparent tax proportionate to the value of goods and services, and
  10. Relief in overall tax burden


What do you mean by special status of Jammu and Kashmir? 

Article 370  under Part XXI of the Indian constitution talks about the special status of Jammu and Kashmir.

The special status of Jammu and Kashmir enshrined in our constitution talks about the autonomy of the state in all matters except external affairs, defense, communications and ancillary matters.

The Parliament needs the state government’s concurrence for applying all other laws. 

Jammu and Kashmir as a state has its own Constitution along with Indian constitution.

The state has followed ‘dual citizenship i.e citizenship of Jammu and Kashmir and that of  India.

What are all taxes at the Centre and State level that are being subsumed into GST?

There are following indirect taxes at the Centre and State level that are being subsumed into GST –

At the Central level,

  1. Service Tax,
  2. Additional Excise Duty,
  3. Central Excise Duty,
  4. Additional Customs Duty i.e is commonly known as Countervailing Duty, and
  5. Special Additional Duty of Customs.

At the State level,

  1. Taxes on the lottery, betting, and gambling.
  2. Purchase Tax,
  3. Subsuming of State Value Added Tax/Sales Tax,
  4. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
  5. Octroi and Entry tax, and
  6. Luxury tax








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