What are the GST bill and its benefits?

What is Goods and Service Tax - What is GST?
GST is a major step towards improving the tax structure of India. Goods and Service Tax is an indirect tax law. GST is an integrated tax that will look at both goods and services. With the introduction of GST, the entire country will be transformed into a unified market and mostly indirect taxes such as central excise, service tax, VAT, entertainment, luxury, lottery tax etc. will be included in GST. This will lead to the same type of indirect taxes across India.

Why GST - why GST Bill:
 India's current tax structure is very complex. According to the Indian Constitution, the Central Government has the right to impose taxes on the production of the state government and the goods and services, mainly for the sale of commodities. Due to this, different types of tax is applicable in the country, due to which the present tax system of the country is very complex. It is difficult for companies and small businesses to follow different tax laws.

GST will eliminate Cascading Effect:
In the indirect Taxation System system, the final consumer has to bear the burden of a tax, but the collection of tax is done by the businessmen. The businessman gets an Input Credit repaid on the goods purchased, which he can use to pay his tax. From this arrangement, tax only takes place on value addition (sales - purchase) or (Value Addition). The businessman collects tax from the consumer and reduces his input credit (tax paid on purchased goods) and deposits it to the government.

But in the current system, in India, the excise duty and service tax by the central government and sales tax by the state government (VAT or Sales Tax) is levied. Due to this, the businessman can not use the input tax of the sales tax (tax paid on the purchased material) in payment of excise duty and service tax, and the payment of sales tax (service tax paid on services) and excise duties Excise duty on purchased goods) can not use the credit Due to this, tax is taxed in the present system, which increases the price of goods and services.

With the introduction of GST, the same type of indirect tax will be made in the entire country, so that the traders will get the full credit of the GST paid on the goods and services purchased, which they can use for the payment of GST on the goods and services sold. This will only tax on value addition and the tax on tax will be eliminated which will reduce the cost.

Key points of GST - Benefits / Salient features of GST
 The GST will only integrate indirect taxes, direct taxes such as income tax etc. will be applicable only to the present system.
· With the introduction of GST, there will be only one type of indirect tax in India, which will lead to stability in the cost of goods and services.
To maintain the federal structure, GST will be at two levels - CGST (central item and service tax) and SGST (state goods and services tax). The share of CGST will be shared with the Center and the share of SGST will be received by the State Government. In the case of sale of goods and services from one state to another, IGST (Integrated Object and Service) will be found. A part of IGST will be received by the Central Government and the second party consuming the goods or services.
· Businessmen will be able to take input credit of GST on the goods and services purchased, which they can use for the payment of GST for the goods and services sold. The input credit of SGST will be used to pay the output tax of IGST and CGST, SGST Use of credit for the payment of the output tax of SGST and IGST and the use of IGST's credit for IGST, CGS Mr., and SGST output will be paying tax.
· Under the GST, all those businessmen, producers or service providers have to be registered, whose total sale is worth more than a fixed price throughout the year.
· In the proposed GST, businessmen will have to fill three different types of tax returns, including input tax, output tax, and integrated returns.

 An impact of GST on Businesses:
At present, businesses have to pay different types of indirect taxes such as excise duty on the production of items, sales tax on trading, service tax on providing service etc. With this, businesses have to comply with various types of tax laws, which are very difficult and complex tasks. But due to the implementation of GST, they will have to follow only one type of indirect law which will facilitate business in India.
· Presently, in the payment of business tax, excise duty and service tax, the input tax of the sales tax can not be used for the tax (paid tax on purchased goods) and the service tax (tax paid on services) and excise duty (Excise duty on purchased goods) can not use the credit Due to this the cost of goods and services increases. But with the implementation of GST, businessmen will get full credit of all GST paid on the goods and services purchased

· Threshold limit (exemption limit) is different in different types of indirect taxes currently. Mainly, Threshold Limit 5 lakhs in sales tax, 10 lakh in service tax and 1.5 crore in excise duty. With GST coming out, there is a proposal to keep the same type of Threshold Limit for all types of businesses (trading, producer or service provider). This threshold limit will be created keeping in mind the current limit of all three laws (sales tax, service tax and excise duty). The main effect will be that the exemption limit will be kept less than 50 lakhs, which will be brought under the GST of small producers which are currently availing the limit of 1.5 crores limit.
· At present, selling of goods from one state to another in the state has a central sales tax of 2%, which does not get input credit. Since the implementation of GST, central sales tax will not be imposed, which will reduce the cost of goods.

What will be its advantages?
According to the Constitution, the Central and the State Governments may impose taxes on goods and services accordingly.

-If a company or factory sells its products in one state and sells it in another state, then it has to pay a lot of taxes to both states, which increases the price of the product. The price of the products will be reduced by GST implementation.

According to a report by the National Council of Applied Research, GST implementation could increase the country's GDP by one to two to two percent.

 Which products will apply to GST?
According to the 122nd Amendment to the Constitution near the GST in 2014, GST will be applicable to all types of services and goods/products. Alcohol alone means that alcohol will be out of this tax.

 How will GST work?
- 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.

 If GST is like VAT then why it needs it?

Although GST is the same tax as VAT, its implementation does not take many other types of tax.

Not only that, the VAT and Cenvat that has just started off GST will end.

A price for goods in any state

-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 costs a different price to buy the same car. With this effect, any goods will be available at any rate in any state.

Decrease in tax dispute
-If this applies, many times tax relief will get rid of it. This will reduce the chances of manipulation by tax officials at the time of tax collection. Taxes will not be required to the same person or institution many times, only taxes will be collected from this tax. Apart from this, there will be a reduction in prices in many states where revenue will increase in many states.

The price of the goods will be reduced
With the implementation of this, the tax structure will be transparent, which will reduce tax disputes to a large extent. After implementation, the VAT, entertainment tax, luxury tax, lottery tax, entry tax etc. will also be lost to the states. At the time of buying the goods, people have to pay 30-35 percent tax on it, it is likely to come down to 20-25 percent.

- 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 harm
The Center will benefit from GST, but the states fear that it will harm them because, after this, they will not be able to recover a lot of tax, which will reduce their earnings. Significantly, half the budget of several states runs from petrol and diesel. Keeping this in view, the Center has given relief to the States and approved that they continue to levy these items in the initial years. Whatever the disadvantages of the states, the Center will compensate them for five years.