One year of GST: A historic step to provide a simplified tax regime, says Yes Securities CEO
One year of GST: Indian government has structured GST for efficient tax collection, reduction in corruption, easy inter-state movement of goods etc.
One year of GST: Prime Minister Narendra Modi government is celebrating the first anniversary of their biggest reform Goods and Services Tax (GST) today. July 1 is a very big day for Narendra Modi government. After all, it was in his reign that the long-pending GST was finally implemented in the country. GST has its own good and ugly moments. It was not an easy task to implement GST which boasts the massive tagline ‘One Nation, One Tax’, as this regime received much criticism from opposition party, some consumers and industries as well.
On one year of GST, Prasanth Prabhakaran, Sr. President and CEO, YES Securities says“GST was a historic step to provide a simplified, single tax regime in line with the tax framework applicable across the globe. With completion of one year of GST implementation, the pains are behind, and gains have already started showing.
According to Prabhakaran, the Government has been more than proactive in meeting, resolving and addressing issues raised by India Inc. Post the launch, multiple levels of simplification in terms of slabs and processes, have ensured higher tax collections and ease of doing business.
Prabhakaran adds, “This will reflect in greater economic activity at every level, thereby impacting the market positively.”
This regime has been in effect from July 01, 2017 by replacing several taxes like central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi. Even other levies which were applicable on inter-state transportation of goods have also been done away with in GST regime.
GST is levied on transactions like sale, transfer, purchase, barter, lease, or import of goods and/or services.
Indian government has structured GST for efficient tax collection, reduction in corruption, easy inter-state movement of goods etc.
India does not follow an ideal VAT. Central sales tax which the central imposed on the sale of goods from one state to another will continue in the different form called Integrated GST.
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One big differentiation between GST in India and GST in other countries is that, in India two types of GST is charged - hence called as duel GST.
There are five tax slabs in GST namely 0%, 5%, 12%, 18% and 28%. They are imposed on variable items like soaps, washing detergents, movie tickets, restaurants bill, dry items, under-construction property, chocolates, sweets, dry fruits and many more.
Some of the products that are exempted from GST are - dairy products, products of milling industries, fresh vegetables & fruits, meat products, petroleum and petroleum products.
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