WHAT IS GOODS AND SERVICES TAX (GST)?
GST Registration in Delhi GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. Its main objective is to consolidates all indirect taxes levies into a single tax, except customs (excluding SAD) replacing multiple levies, overcoming the limitations of existing indirect revenue structure and creating efficiencies in administration.
Simply put, goods and services tax is a taxation levied on goods and services imposed at each point of sale or rendering of service. Such GST could be on entire goods and services or there could be some exempted class of goods or services or a negative list of goods and services on which GST is not levied. GST is an indirect tax in lieu on goods (excise) and taxes on service. The GST is just like State level VAT which is levied as tax on sale of goods. Goods and Services Tax (GST) will be a national level value added tax applicable on goods and services.
A major change in administering GST will be that the taxation incidence is at the point of sale as against the present system of point of origin. According to the Task Force under the 13th Finance Commission, GST, as a well-designed value added taxation on all goods and services is the most elegant method to eliminate distortions and consumption.
Understanding Proposed GST Law
GST Registration in Delhi The spread of Value Added Tax (VAT), also called Goods and Services Tax (GST) has been the most important development in taxation world over in the last half-century. Limited to less than ten countries in the late 1960s, it has now been implemented by over 160 countries worldwide; making it the world’s most commonly used taxation.
In these countries, it typically accounts for one-fifth of the total tax revenue. The recognized capacity of VAT is to raise revenue in a neutral and transparent manner. At the same time as VAT was spreading across the world, international trade in goods and services was expanding rapidly as part of globalization developments and revolution. Most countries have adopted similar principles for the operation of their value added tax system, but there remain many differences in the way it is implemented.
Indirect Taxes in India
A strong indirect tax system is fundamental to the development of a nation’s economy. In stepping up the taxes effort in India, indirect taxes have played an increasingly important role. Presently, the contribution of Indirect Tax is about 68 percent of the total tax revenues of the Central Government.
The term ‘indirect taxes’ generally refers to taxes levied on the basis of production, sale or purchase of goods such as import and export duties, excises, and sales taxes. Indirect taxes include taxes levied on production of goods, rendering of services, entertainment taxes, electricity duties, taxes on passenger fares and freights etc. They are called indirect taxes and can be passed on to someone else (e.g. customers) whereas direct taxes are supposed to be borne by those on whom they are levied. For the Central Government, Central Excise, Customs and Service Tax are the two main components of indirect taxes. For states, Value Added Tax (VAT) is the major indirect tax.
Anshoo Aggarwal writes articles for https://caanshoo.com/. It’s a leading company formation & Gst and Tax services provider in Delhi, India. They are providing various services as like gst registration in delhi, gst registration in chandni chowk, GST Registration, gst return online and gst return services for all types of startups also.
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