How GST works
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GST is an inclusive tax intended to replace the existing indirect tax framework, applicable to both goods and services. It features a dual structure comprising Central GST and State GST, which will subsume various existing taxes at both levels. The implementation of GST aims to disincentivize tax evasion, simplify business operations, and contribute positively to GDP.
How GST works
- 2. 0 5 10 15 20 25 30 35 40 An inclusive tax that will replace current indirect tax regime. Will be levied on both goods and services. Will have dual structure - Central GST & State GST GST an explainer : 0 5 10 15 20 25 30 35 40 CENTRAL TAXES GST WILL REPLACE Central Excise Duty. Additional Duties of Excise & Customs. Special Additional Duty of Customs . Service tax. Cesses & surcharge on supply of goods/services.
- 3. 0 5 10 15 20 25 30 35 40 STATE TAXES GST WILL SUBSUME VAT Central Sales Tax Purchase Tax Luxury Tax Entry Tax Entertainment Tax Taxes on advertisement, lotteries, betting & gamblimg State cesses & surcharge 0 5 10 15 20 25 30 35 40 STATE TAXES GST WILL SUBSUME Disincentivize tax evasion Lower tax rates Simplify business operations Add to GDP