A Comparative View On Goods And Services Tax

26 Aug 2018 10:41

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Prior to going on dialogue we should define GST and the Goal supporting it.

auditors chennai 's GST?

GST is a tax on goods and services with continuous and comprehensive chain of set-off benefits from the Producer's stage and Service supplier's point upto the merchant level. It's fundamentally a tax just on value addition at every stage and a supplier at each point is permitted to set-off via a tax credit mechanism. Under GST construction, all different phases of production and distribution can be interpreted as a mere tax pass through and the taxation basically sticks final consumption within the taxing jurisdiction.

Objective behind GST

A) The incidence of tax simply falls on national consumption. B ) The efficiency and equity of the system is already optimized. C) There shouldn't be any export of taxation across taxing jurisdictions. D) The Indian market should be integrated into a single common market. E) It enriches the reason for co-operative federalism.

Our comparative discussion is going to be based only on important points assembling overall GST.


A dual structure was recommended from the EC. The two elements are: Central GST (CGST) to be levied by the middle and say GST (SGST) by the nations. The Task Force has also recommended for its dual lie imposed simultaneously by the centre and the nations, but independently to market co-operative federalism. Both the CGST and SGST should be levied on a shared and indistinguishable base.

Both have suggested for consumption type GST, which is, there should not be a distinction between raw materials and capital goods in permitting input tax credit. The tax base should comprehensively extend over all services and goods upto final consumption point.

Also both are of the opinion that the GST ought to be structured on the destination principle. According to Task Force that this is going to result in the shift from production to consumption whereby imports will be responsible to both CGST and SGST and exports must be relieved of the load of goods and services tax by no evaluation. Consequently, revenues will accrue to the condition in which the consumption takes place or is required to take place.

The Task Force on GST said the computation of CGST and SGST accountability should be dependent on the Invoice charge technique. I.e., allow credit for tax paid on all of intermediate products and services on the basis of bills issued from the provider. This will facilitate elimination of this cascading effect at different phases of manufacturing and distribution.

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