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About GST

The GST or Goods and Service Tax came into effect on 01 July, 2017. It is an indirect tax that is imposed on the sale of goods and services as well as their manufacturing and usage. GST had been designed to replace the indirect taxes that were being imposed by the States and Centre on goods as well as services. The aim was to help in promoting compliance and running businesses with ease by having uniform tax rates across all the states of the country for intra-state and inter-state transactions.

GST and Its Effects:

Since the implementation of GST, a number of taxes have been phased out. Some of the taxes that have been affected by the roll-out of the GST have been outlined below:

Central Sales Tax: The Central Sales Tax is a tax that is levied on sales that is generated during the inter-state commerce or trade.

Excise Duty: Excise Duty is an inland tax that is levied on the sales or production of goods that are produced within India. It is also referred to as the CENVAT or Central Value Added Tax.

Custom Duty: Custom Duty is a type of indirect tax that is applicable on all the goods that are imported as well as some goods that are exported out of India. Duties that are levied on the former are referred to as import duty while those on the latter are known as export duty.

Swachh Bharat Cess: The Bharat Abhiyan was a mass movement that was launched on 2nd October, 2014 with the intention of working towards a Clean India. It was devised to boost the sanitation in rural as well as urban India. Thus, the Swachh Bharat Cess was introduced.

Krishi Kalyan: This cess was levied by the government for funding and supporting programs relating to the welfare of the farmers. It was collected as per the provision of Chapter VI of the Finance Act, 2015.

VAT: VAT or Value Added Tax was introduced as an indirect tax in many states of India. It was added to goods at every stage of the production as well as distribution process and was finally paid by an end consumer.

Note: The above taxes have, in some way or the other, been affected by the implementation of the GST.

FAQs

When did GST come into effect?

GST or the Goods and Service Tax came into effect on 01 July, 2017.

Why was GST implemented?

GST, being an indirect tax, is a tax that is imposed on sale of goods and services plus on their manufacturing and usage. It was designed to replace the indirect taxes that were in place by the States as well as the Centre on goods and services. GST was implemented to help in promoting compliance and ensuring that businesses run with ease. The deal was to get a uniform tax rate all across the different states of the nation for the sake of both inter and intra state transactions.

What is the difference between Krishi Kalyan and Swachh Bharat Cess?

The Krishi Kalyan was a cess levied by the government to provide funding and support programs pertaining to the farmers’ welfare. It was collected in accordance to the provision of Chapter VI of the Finance Act, 2015. On the other hand, the Swachh Bharat Abhiyan which was a mass movement, which was launched on 2nd October, 2014. The aim was to work towards Clean India. It was devised in order to boost sanitation in urban plus rural India. This is why Swachh Bharat Cess was put in place.

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