A STUDY ON GOODS AND SERVICE TAX IN INDIA

The proposed tax will be one tax, which will cover all levies at the Centre and the State level, including entry tax. It is a value – added tax, which means a levy at each stage of production, sales or consumption will be set off against taxes paid in the previous stage. Through a system of tax credits, those who are in the chain in the intermediate stage will get credits or refunds for whatever levies they have paid. The end consumer will have to pay the entire tax. Different the accessible VAT, which is levied only the manufactured goods, GST will also consist of services and credits will be given. The GST is a variety of indirect tax which will consider about 17 other such central and state taxes when it comes into effect, in simple terms, in place of a group of dues, a customer will have to contract with just one tax. This would not only make tax observance simpler, it would also cut down the time and cost occupied in striking and collecting several forms of taxes. On the other hand, it would do away with the double taxation process.