How will GST work in India?
Goods and Service Tax (GST) is a much needed tax reform our country is eagerly waiting for. The single tax will bring all indirect taxes, irrespective of their size and nature under its roof. GST will revolutionize the indirect part of the taxes. When all the taxes like, sales tax, VAT, Customs, Service tax, professional tax, Excise etc. will be clubbed into one single tax there will be better regulation and collection. Know about the GST work in India. The tax rates will reduce and so will double taxation.
The Government has already passed several GST bills and plans to roll it out by 1st July, 2017.
Registration Under GST
With clubbing of all indirect taxes, you won't need a different registration for every tax. With one single registration you will get registered with every indirect tax, be it VAT or service tax or excise. GST number is a 15-digit alphanumeric number of which 10 digits will be your PAN card number.
Every individual or entity who has an annual turnover of ₹20 lacs or more must compulsorily register under GST. GST has a wider gamut than any other indirect tax and post its applicability not only rates will substantially reduce but tax collection will increase as well.
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Separate GST department
There will be separate department for GST that will work exclusively from exisitng central or state indirect tax departments. Existing taxpayers will have to migrate to GST and register online. The whole process is paperless and can be completed in a matter of minutes. Separate department will ensure there is no favouritism and partiality towards a particular taxpayer.
How will tax be levied
GST will work just like Value Added Tax (VAT). As the name suggests, at different stages tax will only be levied at the value added to the product. There won't be any cascading or double taxation. Secondly, on a given product the tax rate will be similar throughout the country. Under GST there will be sharing of revenue generated from taxes between Centre and the State.
With introduction of GST there won't be any need of Central Sales Tax as all inter and intra state sales, as a given product will be taxed at the same rate.
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