What is GST? All Your Questions About it Answered

Consumers will not be hassled with the implementation. Except that prices of almost every good will go up and down.

New Delhi, June 30: Goods and Service Tax is said to be the biggest tax reform since independence. The government will launch it at midnight on June 30. From July 1, all the indirect taxes on goods and services will be subsumed by GST. What is GST?

GST is an indirect tax. This tax will subsume all the indirect taxes like the central excise tax, commercial tax, value added tax, food tax, central sales tax, intriot, entertainment tax, purchase tax, luxury tax, and advertisement tax into one central tax. Even the inter-state transport tax will be included in GST.

In India, a dual GST model will be applied. Sale, transfer, purchase, barter, lease, or import of goods and/or services will also come under GST. On a sale in one state, two GST will be applied– CGST and SGST. For interstate transfer of goods and services, IGST will be applied. All the states except Jammu and Kashmir have ratified the laws related to GST. Also, a constitutional amendment has been made.

All the goods and services have been divided into five slabs: 0%, 5%, 12%, 18%, 28%. A special .25% tax will be levied on precious stones. 3% will be levied on gold.

Consumers will not be hassled with the implementation. Except that prices of almost every good will go up and down. The traders will be allotted a GST number. They will have to fill their GST tax using that number.

Published Date: June 30, 2017 12:02 PM IST