1. What is GST?
Streamlining of all the different type of
taxes(entertainment tax ,central sales tax,
luxury tax etc.) together and implementing a
single taxation system which is Goods and
service tax (GST).
2. Important features of GST.
• GST is a single unified consumption tax and broad based tax on supply of
goods and services.
• GST is a Destination Based Tax.
• There is no scope for multiple taxation on Goods & Services such as Sales
Tax, Entry Tax, Entertainment Tax, Luxury Tax, etc.
• It will increase tax collections due to the wide coverage of Goods &
Services.
• Goods and Service tax will reduce the tax burden on the assessee’s since
it will avoid the cascading effect.
• In GST tax, there is no scope to levy for resale tax, special tax, additional
tax, turnover tax, etc.
• It has only two components which are central GST and state GST.
