7 things you need to know about GST (Goods and Services Tax) bill

Here are a few things to know about the GST bill –

What is GST? The Goods and Services Tax is the tax levied when the consumer buys a product or a service.

Origin: The GST bill was introduces on December 19, 2014 by Finance Minister Arun Jaitley.

What is the need for GST bill? The bill does away with the levy of different taxes by the state and union governments and replaces them with a single comprehensive tax. Taxes that will be removed after the GST: CENVAT, OCTROI, SALES TAX, EXCISE DUTY

Challenge in GST implementation: The various tax departments of the states and the centre will have to co-ordinate and work harmoniously.

Advantages of the GST bill implementation: The whole of India becomes a single market. There will be more tax revenues for the government with lesser burden on the industry. Prices will be lowered for many manufactured products. It helps boost exports.

What is exempted from the GST? Alcohol will be exempt from the GST and initially petroleum products too.

GST structure: The GST will have three kinds of taxes Centre, State and Integrated GST for inter-state transactions.