The present indirect tax system of India has changed due to the intervention of GST which is known as Goods and Service Tax of India. New regulations have been formed and new rates of taxes were introduced to impose taxes on businesses and customers.
In this article I would like to provide an overview about GST, types of taxes that would cover under it and GST rates in India of present taxation system of India. Let’s get discuss about GST and its impact.
What Is GST? What is the impact of it on customer?
GST is one of the indirect forms of tax which will be imposed as a single tax on supply of goods and services, right from the producer to the end customer. Input tax credits paid at each level will be available in subsequent stage of value addition. This is the main point which made GST essentially a tax only on value addition at each stage.
Here customer will bear only the tax charged by the last dealer in the chain system with specific set off benefits at all previous stages. So we can clearly say that this leads to elimination of cascading system of taxation which means “Tax on Tax” like in previous years.
Which taxes are being included into GST?
The absorption of taxes into the present GST system has been divided into central and state levels. At the central level, following taxes are being included into GST:
- Central Excise duty
- Additional Excise duty
- Service tax
- Countervailing tax (or) Additional customs duty and
- Special additional duty of customs
At the state level, following taxes are being included into GST:
- Value added tax (VAT)/Sales tax
- Central sales tax (Collected by state & levied by centre)
- Entertainment tax
- Octroi and Entry tax
- Purchase tax
- Taxes on Betting, Lottery & Gambling
What are the slab rates of GST or GST rates in India 2017?
Here I am going to provide the detailed rates of GST on various types of goods and services that would cover under the Central GST act, 2017. The following information has been gathered from GST India.com & studydhaba.com.
|Slab Rate||Goods & Services Covered under this rate|
50% of consumer price basket including food grains
Mass consumption items like spices, mustard oil
Soap oils, Tooth pastes, Refrigerators & Smart phones
White goods & Cars
|6||28% + cess|
Luxury cars, Tobacco
Masalas & Alcohol products
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