The Goods And Service Tax, A Whole New Tax Regime
Posted by John Smith on May 24th, 2016
The goods and services tax in India set to reform the entire tax regime in the country and is slated to be the most comprehensive tax structure change since independence in 1947. Doing away with a multitude of taxes both at the central government level and the state government levels, the GST aims to rationalize the tax regime. Removal of the cascading nature of taxes, some that go a long way back, does bring about greater transparency and easier implementation. The new tax regime is set to create a pan India market with minimal monitoring points and fewer implementation steps. No more, would there be the long queues at each state border check point. This ensures free movement of goods, bringing about greater logistical efficiencies.
With fewer points of application of the GST, it becomes easy to monitor and implement. The goods and services tax GST would allow greater compliance as the tax structure is easy to understand as well as implement. Today, with overlapping powers of the central government and the states, there are numerous disputes that arise because of the nature of application of taxation. And more over with differing rates of tax with different states, makes the implementation that much more complex. Effective tax compliance is incentivized and the loopholes available is brought to a minimum. The new tax arrangement is set to bring a uniform market to bring down prices of goods under it and creating a uniform Indian market.
The Goods & Service Tax does not distinguish between sale of goods and delivery of services and is taxed at a single rate from the point of manufacture or supply to the end consumer. A single point of administration ensures minimal delays and ensures quick processing of goods, bringing down the cost involved with the administration of the system. No tax is levied on exports as it is not meant for consumption in India and imports are taxed at a common rate as the domestic goods, ensuring a single market. From the consumer’s viewpoint, the rationalization of taxes would bring down the effective tax paid on goods and services. This brings down the price of goods with a common market that applies to the whole country.
At Doctor of service tax (DOST), we aim to capitalize on the new tax structure that is to be implemented right across the country. We bring about the whole compliance structure within easy reach of the customer. You may log on to the website any time to calculate and learn about the new experience that the GST brings to the country. Being hosted in all major Indian languages, it makes it easier to use for the average Indian customer. With the GST set to revolutionize the tax regime, we at DOST is all prepared to deliver and take advantage of the saving on offer, both monetary as well as with time. So, have no fear; do use our services to know your tax liability as well as any other advice that you may require. We are right here for you.
