Goods and Services Tax.
The Goods and Services Tax (GST) is a value added tax to be implemented in India, the decision on which is pending. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services with few tax exemption. India is a federal republic, and the GST will thus be implemented concurrently by the central and state governments as the Central GST and the State GST respectively. Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle.
At long last, there is some positive move on the roll-out of goods and services tax, which has been held up for last several years. GST is an indirect tax that will lead to the abolition of all other taxes such as octroi, central sales tax, state-level sales tax, excise duty, service tax, and value-added tax (VAT). According to media reports, the Centre and the state governments have arrived at a consensus on the sales tax compensation to state. The Centre has also agreed to a floor rate with a narrow band for the tax, climbing down from its earlier proposal of a uniform GST rate across the country. It has also given states an option to exit the system, if they find it unviable later. The roll-out is going to be a phased one, as in the case of value added tax.
FROM THE WEB.