Goods & Service Tax (GST) is one of the most Significant Tax Reforms introduced in the history of Indian Economy. GST is a destination based tax that has subsumed the earlier Central Taxes and Duties such as Excise Duty, Service Tax, Counter Veiling Duty, Special Additional Duty of Customs, Central Sales Tax, Cesses etc. and also State Taxes such as Value Added Tax, Octroi, Purchase Tax, Entertainment Tax, Entry Tax and Luxury Tax etc. Petroleum Products such as High Speed Diesel, Petroleum Crude etc and also Alcohol for human consumption has been kept outside the purview of GST.
It is Dual Model with State / Union Territory GST and Central GST. Inter State Supplies would attract Integrated GST, which would be Sum total of Central GST & State GST.
Unlike earlier where there were multiple Tax rates, GST has replaced it with Limited Taxes (I.e. 0%, 3%, 5%, 12%, 18% & 28%) making life easier.Under GST, input tax credit can be availed smoothly across goods and services thus reducing the tax burden and removing cascading effect. Also compliance process shall become uniform, bringing all business and Government Agencies under one platform.