cbec.gov.in What is GST-Applicable Products, Price for Goods in Any State & Who Will be Affected by Goods & Services Tax Act India Finance Ministry Law

  
  1. ATiwari

    ATiwari ClueMatrix India

    After agreeing with Congress and Non-Congress opposition, the government will present the GST (Goods and Service Tax) bill in the Rajya Sabha today. In addition to the Congress, BSP and JDU have also given their support in presenting this bill. Although there have been some major changes made to the GST bill to make this agreement. Let’s look.
    • Under which 1% of the Interstate Transaction Tax (ITT) has been removed. In the original bill, there was a 1% additional tax on the trade between the states for 3 years.
    • After the changes, the states will be compensated for 100% losses for 5 years, 100% for the first 3 years, 75% in the fourth year and 50% compensation in the fifth year.
    • A new arrangement has been made to resolve the dispute, in which the voice of states will be raised. The first dispute settlement was based on polling, in which two-thirds of the votes were from the states and one-third of the center.
    • A new provision (नया प्रावधान), which defines the basic principle of GST, will be added to the bill, in which the states and the common people will be assured of no harm.

    What is GST and its benefits?
    Goods and Service Tax (GST) is an indirect tax (अप्रत्यक्ष कर). Under GST, a similar tax imposed on goods and services. Where GST is not applicable, different taxes are imposed on goods and services. If the government applies this bill from 2016, then only one tax will be levied on every item and every service i.e. only taxes such as Value Added Tax (Vat), Excise and Service Tax will be charged.
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    • According to the constitution, the central and state governments can impose taxes on goods and services accordingly.
    • If a company or factory creates/manufactures its product in one state and sells it to another state, then the company has to pay a several of taxes to both states, which increases the price of the product. By implementing of GST, the price of the products will be reduced.
    • According to a report from the National Council of Applied Research, GST can increase the country’s GDP- Gross Domestic Product (सकल घरेलु उत्पाद) by one to two and a half percent.

    Which Products will apply to GST and How will it work?
    • According to the 122nd amendment of the Constitution near the GST in 2014, GST will be applicable to all types of services and goods. Except for alcohol that means the wine will be out of this tax.
    GST-Scope-and-Coverage.png

    • GST will have three components- Central GST, State GST and Integrated GST.
    • Central and Integrated GST centers will be implemented while the state GST will implement the state governments.

    A price for goods in any state-
    Although GST is a tax like VAT but its implementation does not take many other types of tax. The GST will be the biggest benefit to the common man after implementing GST. To buy any goods in the entire country, the same tax will be paid. That is, the price of any item in the entire country will remain the same. Like a car, if you buy it in Delhi, its price is different, while in another state it has to pay a different price to buy the same car. With this effect, any goods will be available in any state at the same rate.


    The Price of the goods will be reduced-
    1. With the implementation of this, the tax structure will be transparent, which will reduce tax disputes to a large extent. After the implementation of this, After the implementation of this, the VAT, Entertainment tax, Luxury tax, Lottery tax, Entry Tax etc will also end to the states. At the time of buying the goods, people have to pay 30-35 percent tax on that, it is likely to fall further to 20-25 percent.
    2. Companies and businessmen will also benefit if GST is implemented. There will be no problem taking the goods from one place to another. When the cost of making the goods decreases, the goods will also be cheaper.

    Who will be affected by the loss?
    The center will benefit from the implementation of GST (वस्तु एवं सेवा कर) but the state's fear that it will harm them because after this, they will not be able to recover several types of tax from which their earnings will be reduced. Significantly, half the budget the several states run from Petrol and Diesel. Keeping this in view, the center has given clearance to states that they continue to tax these items (Petrol/Diesel) in the early years. Whatever the disadvantages of the states, the center will compensate them for five years.


    The user, here we provided you all the detail about GST (Goods & Service Tax)- the advantages and disadvantages. Thanks for visiting Indian Readers Portal (India’s Largest Forum). For more details about GST (वस्तु एवं सेवा कर), kindly visit the online web portal of Goods and Service Tax Network (Ministry of Finance). The link is mentioned in below.
     
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