Goods and Services Tax (‘GST’) is one of the most widely prevalent indirect tax across the globe. In the last 50 years, more than 160 countries have adopted GST. India is preparing itself for ushering GST perceived as a major landmark reform in the Indian Tax System.
In the current tax regime on goods and services in India, tax is on a taxable event like manufacture, sale, entry and provision of service. The tax is collected by the Federal or Central Government or the Regional or State Governments in accordance with the Constitutional scheme. The proposed GST would entail a simultaneous levy of tax by both the Governments on the same ‘supply’ of goods or services or both. The current levies like Central Excise Duty, Service Tax levied by the Central Government in the present form, Central Sales Tax (CST), Value Added Tax (VAT), Octroi, Entry Tax and such other levies will be subsumed in the new GST.
