16/07/2016
GST IN INDIA
-BY CA SUDHIR HALAKHANDI
The GST is much awaited tax in India. It is good , good and good. It will replace all the indirect taxes in States and Centre and remove the cascading effect . It will be a game changer and economy will turnaround after introduction of GST.
Ok, Everybody is praising the GST so what's new in it ? All of you know these so called plus points of GST since the Govt agencies are singing this song since 2006 and Now all the GST experts are repeating it.
GST is a game changer so at least we should have some knowledge about the changes it will bring.
The one biggest change is in central excise. What will happen to Central excise in GST regime. First the name will be changed to CGST but it will have no major effect because what's in the name. The change will be related to point of taxation.
The CGST will be applied on Selling stage instead of manufacturing stage where the cetral excise is at present applicable. This you may call a big change.
Let us try to understand.
Vat is applicable on selling stage so there will be no change in point of taxation as far as Vat and SGST is concerned.
Central excise is applicable up to the point of manufacturig stage and in my opinion this was troubling our lawmakers since last several years and it was their intention to take it to the selling stage to collect more revenue.
You will listen Cascading effect , one tax , simplification of indirect taxation at various GST places but this shifting of taxation point from Manufacturing stage to selling stage is very rarely Highlited.
-Ca Sudhir Halakhandi
