Cenvat, Sales tax, Excise duty, Octroi, Service tax, Entertainment tax, Vat, Security Transaction Tax, Purchase tax, Luxury tax, Lottery Tax are some of the prominent taxes that died after GST.
The GST is a Value added Tax (VAT) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and state governments. GST is set to become one of the biggest fiscal reforms that our country is going to witness. All businesses, small or large are going to get impacted because of this paradigm shift in the indirect tax regime. Policymakers have consistently resonated the benefit of a unified taxation system in a federal country like India.
Benefits of GST:
- Estimated to increase GDP by 0.9% to 1.7%.
- Fewer Tax rates and exemptions.
- Broadening of tax base.
- Efficient use of resources.
- Creation of common national market.
- Improved compliance and revenue collections.
- Mitigation of cascading of taxes.
- Accounting will be simplified and consideration for input tax from raw materials will also become easy.
GST bill is an attempt to bring all these taxes under one act and simply taxation, which will facilitate ease of business in the country.