5/7/2015 (3)WhatisDualGST(GoodsandServicesTax)inIndia?Quora

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WhatisDualGST(GoodsandServicesTax)inIndia?

TherearealreadysomegoodquestionsandanswersonwhatGSTisandwhatitsadvantagesanddisadvantagesare.

WhatisGST?HowwillitworkinIndia?WhatarethegoodandthebadsidesofGST?HowisGSTbeneficialtotheIndianeconomyascomparedtoVATandothertaxes?...(more)

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SatishKumarEditBiographyMakeAnonymous

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Written14Sep,2014.3,510views.

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TldrDualGSTisatypeofGSTinwhichbothcenterandstategovernmentswilllevyGSTseparately,ratherthancenteralonelevyingtaxesandsharingtheirrevenueswiththestates.Theywillhavedifferentratesandpossiblydifferentcommoditiesandservicesinwhichtheyarelevied.DualGSTispreferredincountrieswherethereisafederalstructureofthegovernment.Asinthissystemstateswouldbeindependentintheirrevenuesourcesandtheydon'thavetorelyoncentertosharetherevenuesthattheycollect.Thisisimportantasitwillreducetheconflictbetweencenterandstateoverrevenuedistribution.

GSTwillbeleviedinIndiaunderthisstructureonly.

GurmeetHeera,Econfriendly10upvotesbyRajeevSingh,AnoobRazak,PSnehaSudarshan,(more)

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Meaning:

TheGoodsandServicesTax(GST)isacomprehensivevalueaddedtax(VAT)onthesupplyofgoodsorservices.Francewasthefirstcountrytointroducethisvalueaddedtaxsystemin1954devisedbyapublicservant.InIndia,duetononconsensusbetweencentralandstategovernment,theproposalistointroduceaDualGSTregimei.e.CentralandStateGST.

DualGST:

ManycountriesintheworldhaveasingleunifiedGSTsystemi.e.asingletaxapplicablethroughoutthecountry.However,infederalcountrieslikeBrazilandCanada,adualGSTsystemisprevalentwherebyGSTisleviedbyboththefederalandstateorprovincialgovernments.InIndia,adualGSTisproposedwherebyaCentralGoodsandServicesTax(CGST)andaStateGoodsandServicesTax(SGST)willbeleviedonthetaxablevalueofeverytransactionofsupplyofgoodsandservices.

YogitaKarache,VIndiansdefintlydontvaluelabour...(more)7upvotesbyGurmeetHeera,AnoobRazak,JanhaviBorawakeMorse,(more)

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5/7/2015 (3)WhatisDualGST(GoodsandServicesTax)inIndia?Quora

http://www.quora.com/WhatisDualGSTGoodsandServicesTaxinIndia 2/3

Written15Sep,2014.1,337views.

ImpactonPricesofGoodsandServices:

TheGSTisexpectedtofosterincreasedefficienciesintheeconomicsystemtherebyloweringthecostofsupplyofgoodsandservices.Further,intheIndiancontext,thereisanexpectationthattheaggregateincidenceofthedualGSTwillbelowerthanthepresentincidenceofthemultipleindirecttaxesinforce.Consequently,theimplementationoftheGSTisexpectedtobringabout,ifnotintheneartermbutinthemediumtolongterm,areductioninthepricesofgoodsandservices.Theexpectationisthatthedealerswouldstartpassingonthebenefitofthereducedtaxincidencetothecustomersbywayofreducedprices.Asregardsservices,itcouldbethattheirshorttermpriceswouldgoupgiventheexpectationofanincreaseinthetaxratefromthepresent10%toapproximately14%to16%.

BenefitsofDualGST:

TheDualGSTisexpectedtobeasimpleandtransparenttaxwithoneortwoCGSTandSGSTrates.ThedualGSTisexpectedtoresultin:reductioninthenumberoftaxesattheCentralandStateleveldecreaseineffectivetaxrateformanygoodsremovalofthecurrentcascadingeffectoftaxesreductionoftransactioncostsofthetaxpayersthroughsimplifiedtaxcomplianceincreasedtaxcollectionsduetowidertaxbaseandbettercomplianceCertaintyofimplementation:TheFinanceMinisterhasmadeacategoricalstatementinParliamentthatGSTwillbeimplementedonApril1,2013.Inhissubsequentmediainteractions,hehasfurtherindicatedthatheiskeentoimplementtheGSTevenifsomeoftheStatesarenotreadyorwillingtoimplementGSTbythisdate.Accordingly,basedonthepresentindications,asalsoonthebasisofoursubsequentinteractionswithseniorGovernmentOfficials,webelievethattheApril1,2013timelineforintroductionofthedualGSTwillbemet.

Whowouldbeimpacted:

Allbusinesses,whetherengagedinsales/supplyofgoodsorsupplyofservices,wouldbeimpactedbyGST.Theimpactwouldbeonsupplychains,ERP,productpricing,dealermarginsetc

SourcesPageontaxguru.in

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Ireallydidn'tknowmuchaboutthistopic....soitwouldbeawastetocopythesamefromvariouswebsitesorwiki.....buthere'sagoodexplanationaboutdualGSTwhichwasproposedin2010.http://gstindia.com/about.phpManynewspaperslikeDNAetc.Copieditfromheresolet'sgivecredittothepersonwhowrotethisandsimplifiedRBI'sdetailedexplanationunfitforlayman.

Prosandcons:http://m.economictimes.com/polic...

HopethishelpsandI'msorryofIcouldn'tdojusticetothisanswerforyourquestion:)

ManthanVijayShah,Historyandpolitics

5/7/2015 (3)WhatisDualGST(GoodsandServicesTax)inIndia?Quora

http://www.quora.com/WhatisDualGSTGoodsandServicesTaxinIndia 3/3

Written17Sep,2014.843views.AskedtoanswerbyAnoobRazak.

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Written17Sep,2014.574views.

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Bothstateandcentralgovernmenttakestaxes

AmbujAgrawal,StudentpersueingBBA

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