Assistant Professor, Department of Commerce, Faculty of Commerce and Business Studies, Manav Rachna International University, Faridabad, India
Online published on 31 October, 2017.
In India, two types of taxes are implemented, one is direct tax and another is indirect tax. Direct Tax is a tax which is levied and collected from persons, who are either earning profits or getting salary from their employer like Income Tax, or a tax on property of any person in India above certain limit like wealth tax. Indirect tax is a tax levied and collected from each one in the country, who so ever is consuming goods or services. Hence, this is a tax on goods and services not on persons.
Existing indirect tax structure was highly complicated. There were so many taxes available; some of them were dealt by Central Government like Excise Duty, Service Tax, Custom Duty, Central sales tax and rest like VAT, Entry Tax, Luxury Tax, octroi etc. were dealt by State Government. To subsume cascading effect of multiple taxes, GST has been introduced as a highly expected transparent system.
After a long journey, finally GST will be implemented in India with effect from 1st July, 2017 as a giant tax transformation. There is a lot of speculation about the implication of GST. The questions uppermost in peoples ’mind are-What exactly is the concept of GST? Who has to get himself registered? What is the process of registration? What are the forms available for returns filing? How to file returns? What is input tax credit and benefits of same? On what commodities can one avail input tax credit? The study is based on the above questions and the answers for the same.
GST, supply of goods and services, input tax credit, registration, return, taxable person
