The multi-rate Goods and Services Tax (GST) tax which was meant to unify the nation, went into effect on 1 July 2017. The nationwide sales tax is said to have affected various sectors. Before you switch to Google for answers, here’s a brief about the new tax system.
It is a value-added tax levied on most goods and services sold for domestic consumption, ridding the consumer of different levels of taxes which were paid earlier. All different levels of taxes will be replaced by a single tax – GST.
Over 1200 goods and 500 services were categorised by the GST Council under four different tax slabs – 5%, 12%, 18% and 28%. For those of you wondering which [...]
The government of India has finally passed the GST bill, also known as the Goods and Services Tax bill. This is considered a significant step in the reform of indirect taxation in India. While the rate of GST is undecided it should rain between 17 – 19%.
So what does GST mean and how does it affect the Tech and Commerce Sector?
For starters, companies and manufacturers will see big benefits from this taxation policy. Instead of paying taxes at multiple levels of government including State and Central, there will be one Tax allowing for companies to save from the existing cumulative 25-30% tax burden and reduce it to 17-18% a a single unified tax.