There were number of indirect taxes levied on very same transaction by either Central Government, State Government or local authorities, e.g., Central Excise duty, Service Tax, VAT, Central Sales Tax, Entertainment tax etc.
Now, all such taxes will be subsumed under GST and GST will be levied on supply of goods or services. GST has subsumed those various taxes and put them in one basket to make compliance easier.
There are three types of GST in India.
– Central Goods and Service Tax (CGST)
CGST to be levied by the Centre on intra-State supply of goods or services or both.
– State Goods and Service Tax (SGST)
SGST to be levied by the State on intra-State supply of goods or services or both.
– Union Territory Goods and Service Tax (UTGST)
UTGST to be levied by union territory on the intra-Union territory supply of goods or services or both
– Integrated Goods and Service Tax (IGST)
IGST to be levied by Centre on intra-State supply of goods or services or both, imports of goods or services or both.
GST surely boost the country’s economic growth and ease of doing business in overall industrial sectors. The significant types- CGST, SGST, IGST and UTGST will provide a smooth mechanism of tax collection for the respective central, state and union territory of India.
Author Bio: CA Vishal Raheja: I am a writer and editor for GST Research and Development Department of Taxmann. I am also alumni of Shree Ram College of Commerce and qualified UGC-NET.