GST V/s Existing Law
Introduction of GST has made compliance easier as it has subsume seventeen types of indirect taxes. So overall burden of compliance under different tax forms has reduced. GST is one indirect tax for the whole nation, which has made India one unified common market. There are four types of GST i.e CGST, SGST, UTGST & IGST. CGST & SGST is levied upon transaction happening with in the state, and when transaction are happening in Union Territory then CGST & UTGST is applicable. Following are the taxes which has been subsumed under GST.
It is levied by Central Government.It has subsumed following taxes
• Service Tax
• Additional excise duty
State GST (SGST)
It is levied by State Government.It has subsumed following taxes:
• State VAT, Entry Tax, Purchase tax
• Entertainment tax, Luxury Tax, Taxes on Ads.
• Lottery tax, State Surcharges & cess
Integrated GST (IGST)
It is levied by Centre and state concurrently.It has subsumed following taxes:
• Import / Interstate transaction
How GST will work in comparison to present law?
Present taxation system is very time consuming and cumbersome and introduction of GST will remove such deficiency. Now CGST & SGST/UTGST will be paid by paid by taxpayer on intrastate transactions and IGST will be paid on Interstate transactions in place of present taxpayer. Now working of GST will be called as Dual GST and it will functions for following business verticals :
Manufacturer who produces and sells goods either within state or interstate shall pay CGST along with SGST /UTGST (Local Supplies) or IGST (Inter-State Supplies) instead of Central excise, AVD, SAD, VAT/CST.
Trader who sells goods within state or inter-state shall pay CGST along with SGST / UTGST (Local Supplies) or IGST (Inter-Supplies) instead of VAT/ CST.
Service provider or receiver shall pay CGST along with SGST/UTGST (Local supplies) or IGST (Inter-state Supplies) instead of Service tax.