Goods and Service Tax (GST) – Beneficial to the Common Man?-Aster billing

Goods and Service Tax (GST) – Beneficial to the Common Man?

Aster billing

Indirect taxes from central government are excise duty, customs, services tax etc. State government taxes are VAT, Entertainment Tax etc. Even municipality also imposes taxes like water tax, property tax etc. Tax rates also differ from state to state. To overcome all this complication & to reduce tax burden one common tax Goods and Service Tax (GST) is proposed.

What is GST?

GST or Goods and Service Tax is common tax system proposed by government. As the name suggest it is common tax in economy for Goods and Services. Majority of taxes mentioned above will be replaced by GST. GST will be applicable across country with same rate. This will give benefit to common man in terms of reduction in tax. Even this will be beneficial to businessman. GST is one of the most important tax reform for the country.

GST will cover all stages like manufacturing, consumption, sales of goods and services. This tax will be applicable at national level on all goods and services.

What are the benefits of GST?

Elimination of Multiple Taxes
Biggest benefit of GST is elimination of multiple taxes. All taxes that currently exist will not be in picture. This means current taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall under common tax called as GST.