GST Goods and Services Tax is defined as a uniform indirect tax levied on goods and services across a country. More than countries have implemented GST. The GST rolled out from July 1, There was a huge hue and cry against its implementation.
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The biggest tax reform since Independence is a great change of the indirect tax landscape of the country, subsuming over a dozen central and state taxes. Despite various tax rates of 5, 12, 18 and 28 percent, and many exceptions, the new tax regime is aiming at eliminating the cascading tax structure, easing compliances and help. There are various advantages of gst on Indian economy since its implementation. You can refer the advantages article to see the positive impact of gst in India.
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The Constitution Amendment Bill to replace existing multiple indirect taxes by uniform GST across India is likely to be taken up for voting in Rajya Sabha during this week. Lok Sabha has already passed this Bill. Tax barriers in the form of CST, entry tax and restricted input tax credit have fragmented the Indian market. Cascading effects of taxes on cost make indigenous manufacture less attractive. Complex multiple taxes increase cost of compliance.