Elucidating The Domain Of GST

GST is a broad range of tax which constitutes all the single and comprehensive taxes imposed on products and services. GST helps an organisation to compete in a better way in the global environment.

GST replaces indirect taxes which are in turn subsumed under the canopy of goods and service tax. GST at the central level replaces the service tax, central sales tax, central excise duty, additional excise duties, excise duty imposed on the medicine medicinal and toiletries preparation, cesses and  surcharges, the countervailing duty charged on the imports in place of the excise duty, and the special additional tax reimposed in place of the value added tax. Also at the state level GST encloses the value added service tax or sales tax, the luxury tax, entry taxes not as a replacement for Octroi, the entertainment taxes which are imposed by the local bodies, taxes on lottery, gambling and betting, also some surcharges and cesses. With the help of GST billing software you can easily calculate or verify the imposes GST on the goods you purchase.

Countervailing duty has vs other names such as the additional customs duties and anti subsidies duties that deserve special mention. These are however the import duties which imposed on trade under the rules and regulations of the World Trade Organization or WTO. Their rules aim to neutralize the negative outcomes of the subsidies. This countervailing duty is however charged when investigation reports clarify the injury to the domestic producers, to be caused by the foreign country support.

Some taxes and duties which are not subsumed under the goods and service tax are the basic customs duty, the export duty, stamp duty, excise duty on tobacco products, the taxes on petroleum products, the specific central taxes such as the oil cess, falls under the central taxes. Under the state level taxes the taxes on purchase of food grains, taxes on liquor, environmental tax, taxes for motor spirit and high speed diesel, taxes for construction and maintenance of roads and toll tax, property tax, stamp duty and also taxes on consumption of or sale of electricity. TheNextHint is getting popular day by day, for the ease of access.  

Previously multiple taxes prevailed in the market. However this is largely dependent on the kind of transaction. It can be interstate transaction, or interstate transaction. The goods and service taxes is a comprehensive and destination based tax. A consumer buying any goods or consuming any service of the country is liable to pay the GST. The tax is only imposed when a product is sold and not when a product is manufactured. Hence the taxes are received by the state where the services and products are absorbed and not in the state where they are manufactured. However in case of export of a product the seller of the same does not have to pay the tax.

With the advent of GST consumer does not have to pay the tax after tax individually. Hence GST effectively took away the cascading effect of taxes.

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