Why GST
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 26-12-2014
Why GST???
Presently the tax structure of India is very complex and Central and State both are charging taxes on goods. Although tax credit mechanism is in place but that too needs to be rationalized. Central is also imposing taxes on services. Looking to the global developments and tax structure of developed countries GST is the need of the hour. The need of GST can further be explained in the following points :-
* In the present tax structure there is no system of providing input credit mechanism in between taxes levied by state and the centre. Thus, cascading effect arises.
* There are various definitional issues related to manufacturing
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ensive levy and collection on both goods and services at the same rate with the benefit of input credit.
* Limited number of tax rates.
* Subsume multiple taxes like luxury tax, entertainment tax, octroi etc.
* Common law and procedure is the need of the hour.
* Strong administration of the legal compliances.
Thus we need GST so that a businessman can focus on the overall growth and development along with timely compliances of the legal formalities.
CA Akash Phophalia
Chartered Accountant
(BCOM (HONS), MCOM (FandT), CS, DISA, Certified Indirect Taxation of ICAI)
Office No 203, Amrit Kalash,
Residency Road, Near Bombay Motor Circle
Jodhpur – 342001
Rajasthan
0291-2640225, 9799569294
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