6th April 2017
GST is a form of Indirect Tax which can be introduced in India. Many GST bills have been passed by GST council. GST will create transparency amongst the tax payers will lead to easier administration and enforcement. Goods and Services Tax would be a comprehensive Indirect Tax on manufacture, sale, and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments.
GST would be the significant step in the reform of indirect taxation in India. It is a single form of tax including Centre and State. It would mitigate cascading or double taxation, facilitating a common national market. This will benefit on consumers point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods.
Following are the existing tax would not be subsumed under GST
Income tax- Central government has the power to levy a tax on any income other than agricultural income. Taxes have imposed a tax on taxable income of Companies, Firms, an association of people, a body of individuals, local authority, individuals, HUF (Hindu Undivided Family), and any other artificial judicial person. Income tax is levied and governed by Indian Income Tax Act, 1961. I-T Department of India is administered by CBDT which is part of the Department of Revenue under the Ministry of Finance, Government of India. Income Tax is the key source of funds that the government uses to fund its activities and serve the public.
Custom Duty is the tax levied on imports and exports by the customs authority of a country. These are to raise state revenue or domestic industries from more efficient or predatory competitors from abroad. It is based on the value of goods or upon weight, dimensions, or some other measurable criteria. Custom duty rates are either specific are either specific. or on ad valorem basis. Mainly based on the value of goods.
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