GST Full Form is Goods and Service Tax. GST is an Indirect tax that will be levied on goods and services. GST has come into force from 1 July 2017 and after its introduction, the present indirect taxes like service tax, VAT and excise duty etc. will not be levied. The normal rate of GST is around 18% but on day to day essential goods and services this rate is 0%, 5% and 12% while on luxury items this rate is up to 28%.
The GST was implemented in all states of India except Jammu and Kashmir by the Narendra Modi government on Friday (30 June 2017) at 12 noon.
Advantages Of GST
| 1 | After the implementation of GST, the general public of the country will be the biggest beneficiary, you will have to pay the same tax on the purchase of all goods. |
| 2 | In India, the tax system will become easier. |
| 3 | After the implementation of GST, tax fraud by tax department officials will also be reduced. |
| 4 | Taxes like Service Tax, Central Sales Tax, State Sales Tax and Vat will end. |
| 5 | You still pay 30 to 35% tax on different items, but due to GST, you only have to pay 18% tax. |
Disadvantages Of GST
| 1 | After the implementation of GST, there can be 18-20% increase on fee based transactions. |
| 2 | GST will mean an increase in operational costs. |
| 3 | GST is an online taxation system. |
| 4 | After GST is implemented, Indirect Taxes are increasing, whereas direct taxes are decreasing. |
| 5 | SMEs will have a higher tax burden. |
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