Features of GST
The goods and services tax is a kind of tax which is imposed on sale, usage of goods and services. The GST tax has been introduced by the government about a year ago. It has been designed to replace the indirect the taxes imposed by the goods and services by the state and central taxes. This tax has been applied on the services and goods at the national level. The aim of introducing the tax is to achieve the economic growth.
The main features of goods and services are described in various forms. The features are:
1. As per Indian constitution the concept of GST is declared goods of special importance. The goods and service tax will include the central indirect taxes. The indirect taxes such as service tax, excise duty, countervailing duty, special additional duty of customs, central surcharges and cesses will be under the goods and services taxes. The goods and service taxes the nothing but the replacement of indirect taxes.
2. The alcohol, diesel and petroleum products are out of the GST as of now. The GST group of commission will form a structure for these products after a while. The proper structure will form later by the goods and services taxes team.
3. The integrated goods and service tax on interstate transactions will be collected by the government. The 1% of additional tax is applied to the goods and services which will be collected by the government. This is under the interstate trade tax which will be running in the period of two years. Later those taxes will be allocated to the states which comes the supplies of particular state.
4. The GST has two types of constituents. They are central GST and state GST. The central one is charged by the central government and the state ones is charged by the state government. While the interstate trade or commerce will be collected only by the centre which will levy and collect the goods and services taxes. The taxes are divided and structured by the provision created and decided by the parliament.
5. The GST will also be involved in the state value added tax, entertainment tax, central sales tax, luxury tax, purchase tax,surcharges and consumption tax. These will be involved in the goods and services taxes according to the central and state wise government.
The implementations of goods and services tax in the products and provisions are commonly seen with good benefits. The price and rate formats are been designed for the benefits of common people and business. There is a great impact of the goods and service tax on the small businesses and large business. Though, large business again has the different format of filling the taxation to the government. The GST is now decreasing the unwanted taxations among the products and branded items. The entire indirect tax system will be changed by the impacts of this goods and services taxes. The tax structure, tax frequency and credit utilization will have the huge impacts on GST and it will also have the contribution in the supply chain of taxes in central and state government.
The GST system will build the tax system more clear and transparent in the country. The aim of this is nothing but to reform the tax system in the country. The goods and service tax will now build the one tax system in the entire market of the country. No inequality will be seen among the tax systems. This format of goods and services tax will also bring new opportunities for the people in market. There will be new methods of employment in the business. It will increase the employment in the various forms. The GST takes it own time to bring out the beneficiary things, but it has a strong impact on the market and consumers too. The consumers will get the products in the profitable price and later on the consumer will be the most satisfied one with the goods and services taxes.