Direct Tax Is Collected By The Central Government. Whereas Indirect Taxes Were Collected By The Central And State Government And Local Agencies. For Example, Entry Tax And Vat Were Collected By The State Government But With The Central Government. Local Agencies Collected Other Taxes Like Property Tax, Water Tax, Toll Tax Etc.
For Better Application, Payment Of Taxes And Ease Of Compliance, The Government Has Subsumed A Large Number Of Indirect Taxes Under GST. But Many Of Us Think That With The Introduction Of GST In The Country, All The Previous Taxes Have Been Abolished. On The Other Hand, There Are Still Some Taxes That Are Still Collected Independently. Which Is Described Below:
What Are The Different Components Of GST?
There Are Three Important Components Of GST – CGST, SGST, And LGST
- CGST – The Central Government Of India Collects It On The Intra-State Sales Of Goods.
- SGST – The State Government Collects It On The Intra-State Sale.
- LGST – The Central Government Of India Collects It On Interstate Transactions.
The Central Taxes Replaced By GST
- The Introduction Of The GST Has Replaced The Following Taxes, Which Was Levied Earlier.
- Central Excise Duty
- Central Sales Tax
- Service Tax
- Additional Duties Of Customs
- Additional Duties Of Excise
- Excise Duty Levied Under The Textiles And Textile Products
The State-Level Taxes Replaced By GST
- Purchase Tax
- Central Sales Tax
- Vat
- Surcharge And Cess
- Entry Tax
- Taxes On Lottery, Gambling And Betting
- Taxes On Advertisements
Taxes Not Covered By GST
- Property Tax & Stamp Duty
- Electricity Duty
- Excise Duty On Alcohol
- Basic Custom Duty
- Petroleum Crude, Diesel, Petrol, Atf & Natural Gas
Benefits Of GST
- GST Responsibility To Unorganized Sectors Like Textile Industry
- With GST Replacing Multiple State And Central Taxes, Collected Attar
- GST Reduced Tax On Some Items To 2% And Others To 7.5%
- GST Brings Uniformity In The Taxation Process And Allows Centralized Registration. Gives Small Businesses The Opportunity To File Their Tax Returns Every Quarter Through A Simple Online Mechanism. This Reduces The Multiplicity Of Taxes As They Do Not Have The Resources To Hire Tax Experts.
- GST Has Brought Various Indirect Taxes Under One Roof, Thereby Making The Tax Sigue For Service And Commodity Businesses.
- Exemption From Payment Of GST GST By Service Provider Companies Having The Turnover Less Than Rs 20 Lakhs. 10 Lakh Pu This Gives Long Care To Small Businesses
- Companies With A Turnover Of Up To Rs.75 Lakhs Under GST Tax Aunque Can Benefit From Capitalization Schemes And Make Their Ears An Easy Career For Them.
- The Objective Of GST Is To Reduce Corruption And Sale Without A Receipt.
- GST Excise Duty, Service Tax And Ecer For Small Businesses
- GST Reduces The Cost Of Logistics By Eliminating Border Taxes And Removing Discrepancies At Checkpoints. A 20% Drop In Logistics Costs For Non-Bulk Products Is Clearly An Expected Outcome.
- GST Points To A Positive Impact On India’s Gdp. At Least 80% Of It In The Next Few Years
- With The Implementation Of GST, The Possibility Of Tax Evasion Has Been Completely Reduced.
Disclaimer
The Information Contained Herein Is Generic In Nature And Is Meant For Educational Purposes Only. Nothing Here Is To Be Construed As An Investment Or Financial Or Taxation Advice Nor To Be Considered As An Invitation Or Solicitation Or Advertisement For Any Financial Product. Readers Are Advised To Exercise Discretion And Should Seek Independent Professional Advice Prior To Making Any Investment Decision In Relation To Any Financial Product. Akssai Projexel Is Not Liable For Any Decision Arising Out Of The Use Of This Information.