GST Full Form is Goods and Service Tax. GST is an Indirect tax that will be levied on goods and services. GST has come into force from 1 July 2017 and after its introduction, the present indirect taxes like service tax, VAT and excise duty etc. will not be levied. The normal rate of GST is around 18% but on day to day essential goods and services this rate is 0%, 5% and 12% while on luxury items this rate is up to 28%.
The GST was implemented in all states of India except Jammu and Kashmir by the Narendra Modi government on Friday (30 June 2017) at 12 noon.
Advantages Of GST
|1||After the implementation of GST, the general public of the country will be the biggest beneficiary, you will have to pay the same tax on the purchase of all goods.|
|2||In India, the tax system will become easier.|
|3||After the implementation of GST, tax fraud by tax department officials will also be reduced.|
|4||Taxes like Service Tax, Central Sales Tax, State Sales Tax and Vat will end.|
|5||You still pay 30 to 35% tax on different items, but due to GST, you only have to pay 18% tax.|
Disadvantages Of GST
|1||After the implementation of GST, there can be 18-20% increase on fee based transactions.|
|2||GST will mean an increase in operational costs.|
|3||GST is an online taxation system.|
|4||After GST is implemented, Indirect Taxes are increasing, whereas direct taxes are decreasing.|
|5||SMEs will have a higher tax burden.|