What is Goods and Service Tax (GST)?
Well every nation has their own policy when it comes to taxation, similarly in India; there are two types of taxation in process such as Direct and Indirect. Recently, the entire nation is facing some bold moves taken by the current government under the leadership of Mr. Narendra Modi, as the latest addition to the detonative moves the finance ministry is about to implement the Goods and Services Tax (GST).
Goods and Services Tax (GST)
The GST is the newly proposed taxation process which mainly intended to merge all the indirect taxes collected among the consumers in to single system. The GST taxation includes the process of collecting tax amounts on Manufacturing, sales and for consumption of the goods by the consumers all over the India. Also the newly proposed taxation process includes the tax amount for services carried throughout the nation.
Image source: thelogicalindian.com
Key points to be noted
- All tax amount will be charged at single rate in entire supply chain until the goods reaches the end customer who are the real consumers of the products.
- The whole administrative responsibilities on handling the GST would be under single authority which is mostly the Finance ministry of the India.
- Under this new system, the exports process would be the charged with any tax amount, however for imports there would be certain amount charged under the name of domestic goods and services.
- Introduction of this uniformed taxation process would lay strong foundation to the significant improvement in the indirect taxation carried by the nation.