LV NewsLV InsightsThe Basics

The World’s Largest Tax Reform Ever Undertaken

One Country. One Tax. One Market

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

“As I said, we made sure that consumers don’t have to pay more. The net effect of goods and services is not going to be inflationary because once the system of input credits starts the actual incidence is going to be positively impacted.” – Arun Jaitley

But you probably knew this.

SO…here are some details you will find useful.

KEY benefits of GST:

  • Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.
  • Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral,irrespective of the choice of place of doing business.
  • Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
  • Improved competitiveness: Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.

7 Myths of GST Debunked:

As per Revenue Secretary, Ministry of Finance, Government of India Dr Hasmukh Adhia, @adhia03

The GST Rate Card:

The GST Council has finalised tax rates of 0%, 5%, 12%, 18% and 28% for goods and services.

The government has kept a large number of items under the 18% tax slab. The government categorised 1,211 items under various tax slabs. Access the entire list here.


GST Rollout 101: Impact Of Becoming ‘One Nation, One Tax’ On Indian Startups Link

GST: How Startups have prepared themselves for the new tax regime Link

Startups welcome GST despite burden of more compliance Link

GST, moonshot, and the success formula Link


Show More

Related Articles

Back to top button