TAX CONSULTANT GOA

As you are aware that the Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure rather we can say that the biggest business reform in India since Independence, at last set to become reality and which may be roll out from 1st April 2017. Here’s given below that how GST differs from the current tax regime, how it will work, and what will happen when it is implemented.

Presently, Central Government is empowered to levy excise duty on manufacturing and service tax on the supply of services. Further, State Governments has the power to levy sales tax or value added tax (VAT) on the sale of goods and various other taxesduties as been empowered under the constitution. This exclusive division of fiscal powers has led to a multiplicity of indirect taxes in the country. This multiplicity of taxes at the State and Central levels has resulted in a complex indirect tax structure in the country that is ridden with hidden costs for the trade and industry.

In present scenario,

There is no uniformity of tax rates and structure across States.
There is cascading of taxes due to ‘tax on tax’.
No credit of excise duty and service tax paid at the stage of manufacturesupply of services are available to the traders while paying the State level sales tax or VAT, and vice-versa.
Further, no credit of State taxes paid in one State can be availed in other States.
Hence, the prices of goods and services get artificially inflated to the extent of this ‘tax on tax’.

PROPOSED GST

Dual GST: Both Centre and States will simultaneously levy GST across the value chain on the same base. Tax will be levied on every supply of goods and services.

CGST: Centre would levy and collect Central Goods and Services Tax (CGST) on intra state supply.
SGST: States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
IGST: The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods a