Concept of GST.

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The Goods and Services Tax (GST), considered as the most profound reform in India’s indirect taxation system finally becomes a reality. GST anticipates that the tax base will be with minimum exemptions. The main expectation from GST is to eliminate all indirect taxes and only GST would be levied. As the name suggests, the GST will be levied both on goods and services.
GST is heralded as a unified system of taxation by which the economy will take an upward swing. GST is a tax imposed on multiple industries, specifically for manufacturing, sale and consumption on goods and services. This tax will be a substitute for almost all indirect taxes by the State Government and Central Government. Exports and various direct taxes such as income tax, corporate tax and capital gains tax are not included in GST, hence will be unaffected by the new taxation system.
The Rajya Sabha has cleared the bill to amend the constitution and bring about a system of GST in India. The new taxation system is perhaps heralded as the most crucial economic reform on current government’s agenda. GST happens to be complicated as most massive taxation reforms usually are.

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