How is GST beneficial for the country?
GST has reduced taxes on certain goods by 2\% and others by 7.5\%, such as smartphones and cars. GST brings uniformity in the taxation process and allows centralised registration. This gives a chance to small businesses to file their tax returns every quarter via an easy online mechanism.
Do other countries have GST?
According to the OECD, 29 of the 30 member countries apply some form of GST. The only exception is the United States where there is no federal GST or VAT. Instead, each state of the United States may apply its own sales taxes on goods and services.
Why do we need a GST?
GST is Levied at the point of consumption, which makes it as a destination based tax system. Because of Dual GST concept, State and Centre shares the tax collected. We can see that Our Nation Needs a Tax Structure, which is comprehensive and Transparent and GST is the answer of these issues.
Where is the GST going to be collected?
GST is going to be collected at point of Sale. The GST is an indirect tax which means that the tax is passed on till the last stage wherein it is the customer of the goods and services who bears the tax.
Is GST a destination-based tax?
Destination-based: Since the tax burden falls on the consumer, GST filing is a consumption based tax levied at the point of consumption. This means if goods are manufactured in a state and sold in another, the tax revenue reaches the state where the goods are consumed and not where they are manufactured.
What are the tax calculations under GST?
Here are the tax calculations under GST. Tax @ 10\%. Under GST, taxes claimed in the previous stages can be adjusted to the later-stage tax liability while filing GST returns. This is called an input tax credit. The effect of input tax credit reduces the final value of the goods from INR 1,963 to INR 1,705.