Wednesday, November 11, 2009

GST from 1.4.2010 - A quick glance

Finally Goods and Service Tax (GST) sees some light of day. A discussion paper has been released yesterday by the Government, and there is a talk of implementing GST from 1.4.2010 (5 months from now, this is a doubtful date but I am sure from 1.4.2011).

What is GST? – it is a combined tax. It means that:

From 1.4.2010 (or 1.4.2011), there will be no Excise Duty, no VAT, no service tax, no additional duty of customs and no countervailing duty in customs (however basic customs duty will stay).

All these taxes will be unified into one tax called “GST”. (Though this seems simple there are some complications like Central GST, State GST, Interstate GST, which I will not elaborate now).

This GST will have impact on raw material prices & pricing to customers.

Rates of GST & some legislation are yet to be pronounced.