TAXATION

Goods and Service Tax (GST)

GST When transporting of goods from one State to another, every State through which the goods are being transported has to pay entry tax, this makes the cost of delivery costly and the customer and the seller / supplier has to pay more while the State is generating revenue. GST being comprehensive tax levy will integrate State economies and use the tax for the growth of the nation and will reduce the liability of the supplier / seller and buyer from paying more taxes.

Certain taxes such as Value Added Tax (VAT) and Service Tax, along with a number of other indirect taxes, are slated to be subsumed by the proposed Goods and Services Tax (GST) to be made effective from April 1, 2016. The GST is a comprehensive consumption based destination tax levy on manufacture, sale and consumption of goods and services at a national level. It is proposed to be concurrently charged by the Centre as well as the State. However, the threshold limits, persons liable to pay tax and other details under the GST regime are yet to be notified by the government.