GST V/s Existing Law

Introduction of GST shall make compliances easier as it will subsume number of indirect taxes. GST is one indirect tax for the whole nation, which will make India one unified common market. There will be three types of GST.

  • Central GST(CGST)

  • It is levied by Central Government.It will subsume following taxes

    • Excise
    • Service Tax
    • Surcharge
    • Additional excise duty

  • State GST (SGST)

  • It is levied by State Government.It will subsume following taxes:

    • VAT
    • Entertainment tax
    • Lottery tax
    • Octroi

  • Integrated GST (IGST)

  • It is levied by Centre and state concurrently.It will subsume following taxes:

    • Import / Interstate transaction
    • CVD
    • CST
    • SAD

How GST will work in comparison to present law?

Present taxation system is very time consuming and cumbersome and introduction of GST will remove such deficiency. Now following taxes shall be paid by taxpayer in place of present taxpayer. Now working of GST will be called as Dual GST and it will functions for:

Manufacturer

Manufacturer who produces and sells goods either within state or interstate shall pay CGST along with SGST (Local sales) or IGST (Inter-State Sale) instead of Central excise, AVD, SAD, VAT/CST.

Trader

Trader who sells goods within state or inter-state shall pay CGST along with SGST (Local sales) or IGST (Inter-state Sale) instead of VAT/ CST.

Service Provider

Service provider or receiver shall pay CGST along with SGST (Local sales) or IGST (Inter-state Sale) instead of Service tax.