Thursday, 31 July 2014

[Video] What is GST and how it will replace all Indirect taxes

This video by Amlan Dutta explains how GST will benefit all.

It's now very evident that Good's and service tax will hit India soon .Once set in , it will replace all Excise, service , CST , VAT, octroi, Local Body Tax.. just one GST will replace all indirect taxes

The good's and service tax (GST) is a excellent initiative but the states fear on losing revenue for example VAT , Octroi combine to the state revenue. VAT is nothing revenue for the state in terms of the sale happening in the state. So states have started fearing that they will be losing a lot of revenue in case such a centralized GST is implemented.

Basically the principle is that if the duty for a good ,say 100 Rs is fixed at 20 % , then center will collect 10 Rs and state will collect 10 Rs, however the state fears that it's collection's earlier in terms of VAT and octroi will be far compromised and so they are raising obstacles for the bill to pass.

As a common manufacturer , he will be subjected to less torture of facing 4 departments and filing 4 returns and can have a single place to file GST that's it. No more excise returns , no more sales returns , no more VAT returns - JUST 1 GST return.

Support GST to replace all indirect taxes, Support DTC (direct tax code ) to replace the complicated existing tax (direct )

National interest should come before self interest and so let us all join hands in welcoming good thing's that augur well for the economy. Don't fear what will happen to you. The world breed's on good change, just because we spend 15 years learning service tax , it doesn't mean that we should revolt against GST, rather good sense should prevail and we should welcome it.
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