New Indian Goods and Services Tax Regime in Place by 2010

Posted by Reading Time: < 1 minute

May 26 – The Indian government is studying tax reforms that will sweep away part of the current VAT system, a variety of state level direct and indirect taxes, excise duties, service tax and luxury tax and replace them with a single Goods and Services Tax (GST).

The GST will require legislative and constitutional changes in order to pass into law taking about ten months to prepare, get onto the statute and make necessary administration changes. The predicted rate for the proposed GST is said to be 20 percent.

This should create a national tax standard across the country with consumers paying a single rate of GST across India. The target date for implementation is the 1st of April next year to coincide with the start of the new fiscal year.

Once the GST is implemented, all other state and central level taxes, including VAT, excise duty, service tax and luxury tax would be abolished. Customs duty will be levied out of GST and is likely to be replaced by VAT on imports.

Currently, the various Indian states levy VAT at a 4 percent or 12.5 percent rate depending on the type of goods, with excise duty usually levied at 8 percent for most commodities. Services are taxed at 10.3 percent.

The new GST system will make the payment and collection of taxes easier and reduce manufacturing costs. Petroleum products and liquor are however likely to remain outside the GST structure.

36 thoughts on “New Indian Goods and Services Tax Regime in Place by 2010

    Complete details about GST

    Who would be authorised to collect GST if service tax is subsumed . Is it the Central Excise authority or the State Government ?

    Rajesh Adatiya says:

    what about an local state level tax Octroi and Cess in maharashtra after GST applied? Plz. give me details.

    Editor says:

    Dear Rajesh,

    While the picture still remains unclear regarding the government’s intentions for Octroi and Cess, most tax experts believe that they will both be abolished and included in the GST itself.

    Mahesh Balakrishna says:

    It’s good that new Tax system is coming to effect. In this connection, can you please brief me about it or mail be the web address wherein i’ll get more details, as to how is it different from the present VAT, how GST is to levied, would there be different tax rates, who would be authorized to collect the GST, if service tax is subsume like is it the Central Excise authority or the State Government?

    Thanks & Regards,
    Mahesh Balakrishna
    (99643-01425)

    Sumit Goel says:

    Pls provide the complete details abt the GST

    Ganisht Garg says:

    It’s very good that our country now follow the unitory system for collection of Indirect tax. But I have a qus. that if unitory system has been followed then what is the source of income of state govt.
    Pls provide me latest updates in GST on my email ID

    Thanks
    Ganisht Garg

    The GST is currently being processed, full details are expected to come out next year.

    GOPAL TIBREWAL says:

    Sir,
    Please let me know that if GST comes into effect what will be the tax structure for non taxable items.

    Sunil Kelkar says:

    Since VAT and CST will be subsumed, will the requirement of Road Permits by some states like UP, Haryana, Bihar, W Bengal, Orissa, Andhra Pradesh and the Northeastern States also become irrelevant?

    Jitendra Barathe says:

    Well I m wellcoming GST. But who will be authorised to attend on behalf of company before GST authorised officer.

    K C Ramesh says:

    Only when the act comes in to force we can really comment on it

    Santosh Phulse says:

    The Indian Government has taken a right decision for implement the GST after taking care of all other taxes.

    I am wellcoming GST.

    kartheeban says:

    1.what is gst
    2.what are benifits
    for exm. we are purchasing raw materials in GST and we are mfrd at that time what tax applicable,
    we are eligible for credit taken GST
    3. Trading business We are purchasing from other state we are selling Local Sales What tax applicable.
    pls

    VANAJA says:

    kindly let me know briefly about GST and inform me about the tax structure of GST. I also wish to know whether we should pay tax to COMMERCIAL TAXES DEPARTMENT OR CENTRAL EXCISE.

    kiranpreet says:

    It’s good that new Tax system is coming to effect. In this connection, can you please brief me about it or mail be the web address wherein i’ll get more details, as to how is it different from the present VAT, how GST is to levied, would there be different tax rates, who would be authorized to collect the GST, if service tax is subsume like is it the Central Excise authority or the State Government?

    Thanks & Regards,

    kiranpreet

    R.GOPALA KRISHNA says:

    please let me know more details about GOODS AND SERVICE TAX ( GST )

    prasanta chatterjee says:

    1. what is the utilities of GST after withdrawn from VAT Act in the state ?
    2. In GST Rule would provide the input tax credit like VAT Act ?
    3.Well I m wellcoming GST. But who will be authorised to attend on behalf of company before GST authorised officer.
    please briefly reply.

    Dear Prasanta,

    GST will create uniform market in terms of price of the goods. Goods price disparity from the market will be eliminated. GST will put a uniform rate ranging between 14-16% on all most every kind of goods and services. The exact rate is yet be decided by the Government.

    GST is also based on Tax credit system and the will be paid by the consumer as consumers are the end users Goods and Services.

    Thanks for your comments
    Regards,
    Vikas Srivastava
    Dezan Shira & Associates

    Raghunathan says:

    This is a good development. This is too good to be true looking at the present “difficulties” experienced by assesses.
    Are we going to be spared the pain of obtaining “C” forms from the state sales tax authorities?

    DESR RAMU (GUNTUR) says:

    is there any loss to AP government if GST will come.

    sureshbhoi says:

    Pls provide the complete details abt the GST in
    in gujarat gst applicabale frn 1st april 2010 or 2011
    ?
    replay me

    Sharad Bangar says:

    Let me know the update of GST details on my e-mail ID.
    What will be initiative actions for balances of current duties to be carry forwarded to GST and impact on issues pending with excise & Service tax department.

    TONY THOMAS says:

    Why can not we think for a SINGLE POINT TAX GST instead of Duel point (State GST and Central GST) system.

    R.Srinivas says:

    The Government should give much more publicity and creaate awearness in the public regarding the GST.

    Umesh Rohilla says:

    What is the GST. and what kind differential from existing VAT. Existing VAT is stand or replaced by GST.

    Further please send the updataion of GST on my above E.Mail

    Pravin Prajapati says:

    Please let me know about GST & also credit taken procedure for as per previous Central excise Cenvat credit on my mail ID.

    p.shah says:

    Please let me know about GST & also credit taken procedure for as per previous Central excise Cenvat credit on my mail ID.

    p.shah says:

    pl.tell me about, our excise & service tax and state tax of vat are credit. After the applicable of GST it was given refund or set off against GST. What action should be take governament.

    Sir,
    Please let me know
    1. What will be the rate of GST on Wire Nails, Bolts, Screws etc.

    2. What will be the rate of GST on HB wires, Wire rods, Annealed wires, MIG/TIG wire etc.

    You may inform me by e.mail

    What is ment by moderation ?

    Editor says:

    As stated earlier, the GST is currently being processed, full details are expected to come out in 2010. We will be sure to post updates when more is known.

    Regards,

    mousmi says:

    kindly let me know briefly about GST and inform me about the tax structure of GST. I also wish to know whether we should pay tax to COMMERCIAL TAXES DEPARTMENT OR CENTRAL EXCISE.

    punit says:

    nay one can tell after gst thaere will be remove vat

    tejendra panchal says:

    thank you india

    kunal Gohil says:

    hi. Can u pls send me all the details of GST V/s Vat , as i m Making a Dissertion on it…

Leave a Reply

Your email address will not be published. Required fields are marked *