Understanding India's Tax Reform
Goods and Services Tax is a comprehensive indirect tax levied on the supply of goods and services throughout India.
GST replaced multiple central and state taxes, creating a unified tax system across the nation.
GST was launched on July 1, 2017, marking a significant milestone in India's tax history.
GST aims to create a common market, reduce tax cascading, and simplify the tax structure.
GST is structured with multiple tax slabs - 5%, 12%, 18%, and 28% to accommodate different sectors.
Businesses can claim credit on taxes paid on inputs, reducing the overall tax burden.
GST is levied where goods are consumed, not where they are produced, ensuring fair distribution.
GST requires digital filing through GSTN portal, promoting transparency and ease of compliance.
Levied by the central government on intra-state supplies, collected by central authorities.
Imposed by state governments on intra-state supplies, collected by state authorities.
Levied on inter-state supplies, collected by central government and shared with states.
Similar to SGST but applicable in union territories without legislature.
GST replaced multiple complex taxes with a single, unified tax system reducing compliance burden.
Digital filing and input tax credit mechanism help minimize tax evasion and increase transparency.
GST creates a common national market, facilitating seamless movement of goods across state borders.
GST is designed to be revenue neutral for the government while benefiting consumers and businesses.
GST simplified tax compliance for small businesses through composition scheme and higher threshold.
Manufacturing benefited from reduced cascading taxes and improved logistics efficiency.
Services became more competitive with integrated tax structure and simplified procedures.
Consumers experienced price stability and transparency in tax calculations across the country.