The tax which is levied when a consumer buys goods or services is known as goods and services tax in India. It is single and comprehensive tax that subsumes all the other smaller indirect taxes on consumption. It is one of the biggest indirect tax reforms since the year of 1947. It is levied on the consumption and manufacture sale of goods and services. It can lead to integration in the sector of economy. The main function of the tax is transforming India into a uniform market by the process of breaking the current fiscal barrier between the states.

It further leads to the facilitation of a uniform tax which is levied on goods and services throughout the entire country. The Government of India is committed for replacing all the indirect taxes which are levied on goods and services. With the help of goods and services tax gst, the tax base is expected to be comprehensive. All goods and services are also going to be taxable with least exemptions. It is a reform which is going to be a game changing one by the development of a common Indian market. It also facilitates the reduction of cascading effect of tax on the cost of the goods and services.

It further also paves way towards impact in the structure, incidence, computation, payment, compliance, utilization and reporting of tax. This further leads to a complete overhaul of the current tax system which is indirect in nature. Items like petroleum products, alcohol and tobacco are kept out of the purview of the GST as a matter of support for the states. The final consumer is to bear the Goods & Service Tax which is charged by the last dealer in the chain of supply. It also has set-off benefits at all the prior stages. It further proposes an additional tax which does not exceed 1% on inter-state trade in goods.

It is to be levied and collected by the center in order to compensate the states of the country for a period of two years. You can keep on browsing the doctor of Service Tax for further information on the topic. It is sure to keep you updated on the latest findings and revelations. The tax will have a far reaching point on aspects of all business operations in the country like the price of products and services, IT, supply chain optimization and so on.