GST has changed the tax system
Answers
GST is perhaps the biggest tax-related reform in India since Independence bringing uniformity in the taxation structure and eliminating the cascading of taxes that was levied in the past. The GST Council meets from time to time to revise the GST rates for various products. Several states and industries recommend reduction in GST tax rate for various items which are discussed in these meetings.
GST stands for Goods and Services Tax. Following are the various types of GST.
CGST –Central GST
SGST –State GST
IGST –Integrated GST
At the time of GST implementation former Finance Minister, the late Mr. Arun Jaitley said that the government wanted to keep the GST rates close to the original rates. But there were differences in case of some items because of the changes in the economy as well as customer preferences. Some commodities were kept in the high tax bracket (18-28%) but on scrutinizing the list, they found that these commodities should be considered as necessities and not luxuries. This is why the GST rates were revised for commodities such as notebooks, exercise books,
Explanation:
It practically removed the cascading effect of the previous tax system. GST is a value-added tax that is collected at each level of a supply chain. ... In GST this cascading effect is removed as the Input Tax Credit (“ITC”) is available for all goods and services at each and every stage of the supply chain.