One Nation One Tax From July 1

GST (Goods and Services Tax),

a major breakthrough has the potential to make India competitive. A single tax to replace multiple levies is imposed to Augment Economic Gain and Curtail Compliance Pain. GST is charged on all dealings such as import of goods and/or other services, sale, lease, transfer, purchase, and barter.

Integrating several Central and State taxes into a single tax should lead to easier management and implementation. A Nation is complete when taxes are paid. The prime plus would be in terms of a decrease in the overall tax burden on goods for the buyer. GST amalgamates:
  • Central Excise Duty
  • Entertainment Tax
  • Service Tax
  • Entry Tax
  • Commercial Tax
  • Purchase Tax
  • Value Added Tax (VAT)
  • Luxury Tax
  • Food Tax
  • Advertisement taxes
  • Central Sales Tax (CST)
  • Taxes applicable on lotteries
  • Octroi (CST)
Benefits of GST:
  • Business and Industry
  • Easy Compliance
  • Uniformity of Taxes
  • Entry Tax
  • Commercial Tax
  • Purchase Tax
  • Reduces Compliance Cost
  • Improved Competitiveness
  • Seamless Tax Credits

  • Central and State Govt.
  • Simple and easy to administer
  • Better Tax compliance
  • Efficacy Greater Revenue

  • For the Consumer
  • Transparency of Taxes paid
  • Lesser Tax Burden

Nevertheless, GST will be a substantial reform of the indirect tax structure of India. Every person/business providing amenities is liable to charge for the GST. Mixed reviews of GST as a success or a failure is to wait and watch. The journey begins!!!