What's the importance of GST bill in India

2. Introduction • GST or Goods and Services Tax (GST) is defined as the tax levied when a consumer makes a purchase. It can be defined as a comprehensive indirect tax and all-in-one tax which amalgamates the manufacture, sale, and consumption of goods taxes along with the services. It is a simplified version of taxes as GST is set out to replace all indirect taxes which are levied on goods and services by both the Indian Central and State governments. This simplification of taxes puts it under a single umbrella to eliminate the impact of taxes on the production and also the distribution of prices of various goods and services. Accounting firms ina Chennai can help you unravel the nitty-gritty of the GST for of tax regulations. • • • •

3. Impact of Taxes Impact of Taxes • The current complex tax structure involves the taxes to be levied by the State and Union governments separately leading to the increasing and complicated tax structure. The taxes are implemented at various rates and at multiple points which bamboozle most taxpayers and that is why the help of a tax consultant in Chennai or any other place in India can make things easier for you. • As far as the Centre is concerned there are various taxes it levies on the common people like the Income tax, excise duty, service tax, central sales tax and security transaction tax. And at the state level, it includes VAT or sales tax, property tax, state excise, entry tax and agriculture tax. • It almost acts as a double whammy as it leads to an increased tax burden on the Indian products making the prices and sales of products in the domestic, as well as international markets, shoot up.

4. So is GST the Savior in Disguise? The cascading effect of multiple taxes proves to be a burden on the common man and the only solution as of now is the GST. The framework of the proposal of dual GST means that will have a federal structure. To explain further the GST will basically be divided into three kinds of taxes that includes Central, State and another one known as the integrated GST that helps handle inter- state transactions. Under the present GST tax reform, different kinds of services are included in sale, transfer, barter, exchange, and rental which will include a CGST and SGST.

5. The Importance of GST • The impact of indirect taxes can be explained in a number of ways, the example which can explain things well is if one person lets call him A sells goods to another person B after levying sales tax and then again when B re-sells those goods to C after levying sales tax on it. So, when B includes the sales tax paid on the previous purchase it becomes a tax on tax. This is how GST can simplify things and makes things easier to the common consumer. •

6. Is there any Con to the GST Tax • In India, there are two forms of GST namely the Central GST or CGST and the state GST or SGST. The only obstacle to the implementation of GST can be the coordination amongst the different states. The Centre and States have to agree on one thing that is the uniformity of GST rates, the inter-state transaction of different goods and services, there should be a sea change in the infrastructural standpoint. The transition from the old form of taxes to the new form of taxes that is the GST pattern must be smooth without any loopholes. The GST being a destination based tax there has to be a clarity as to where the goods are going and for that there needs to be a proper methodology that would ensure proper management in terms of services provided. A uniformity of GST in all states at the same time and the same rates is the only way that will help improve tax governance. • •

7. Is there any Con to the GST Tax Chennai Main Office +91 98402 77503, +91 98403 56270 info@vramaratnam.com 21, Rukmani St Kamatchi Puram, West Mambalam Chennai, Tamil Nadu 600033 Chennai Branch Office 26, Ground Floor, 4th Street, Abhiramapuram, Chennai - 600 018. Website http://www.vramaratnam.com