All about the Goods and Services Tax (GST)

TAX the word has its influence on all the classes of people. Understanding the tax regime of a large country like India whose average economy ranges approximately 2.4 trillion dollars is quite difficult for a person whose primary source of income is through jobs or business. Thanks to the GST which made the tax simpler and now even a common person can understand and leverage the benefit of it. Prior to GST, there were a lot of indirect taxes levied by both the central government and state government. This made the tax regime very complex. State governments used to levy the value-added tax (VAT) and state government used to levy central state tax (CST), along with these there were many other taxes which used to overlap. This overlapping of taxes where a consumer ends up paying extra taxes is called the cascading effect of taxes.

GST is an indirect tax that replaced the cascading effect of many indirect taxes, is a comprehensive, multi-stage, destination-based tax levied on every value addition. Popularly known as one indirect tax for the entire country, it is making good acceptance in the business world as it’s imposed on every stage of production and is meant to be refunded to all the parties involved in the stages except the end consumer. There are various slabs like 0%, 5%, 18%, and 28% through which GST is levied. Most of the products before GST were in a range of around 27% of the statutory tax rate, now they are in the range of 18%. A few products like petroleum products, alcoholic products, and electricity are still under the old tax regime under the control of respective state governments.

A union territory and country capital like Delhi which hosts a number of businesses in around the city including the NCR requires regulation and implementation of GST accurately at all levels be it manufacturing, distributing or selling of any product or services. Thus GST consultants in Delhi have a major role in: