7 things you need to know about GST (Goods and Services Tax) bill
Here are a few things to know about the GST bill –
What is GST? The Goods and Services Tax is the tax levied when the consumer buys a product or a service.
Origin: The GST bill was introduced on December 19, 2014, by Finance Minister Arun Jaitley.
What is the need for a GST bill? The bill does away with the levy of different taxes by the state and union governments and replaces them with a single comprehensive tax. Taxes that will be removed after the GST: CENVAT, OCTROI, SALES TAX, EXCISE DUTY
The challenge in GST implementation: The various tax departments of the states and the center will have to coordinate and work harmoniously.
Advantages of the GST bill implementation: The whole of India becomes a single market. There will be more tax revenues for the government with a lesser burden on the industry. Prices will be lowered for many manufactured products. It helps boost exports.
What is exempted from the GST? Alcohol will be exempt from the GST and initially petroleum products too.
GST Bill if implemented will set forth a single tax structure, eliminating challenges for inter-state movement of goods and commerce resulting in reduced tax invasion as transparency in businesses is the prime feature of this Bill.
GIBS being one of the Top B schools in India enrich the students with knowledge and understanding of various aspects of Business and the financial sector such as GST.