Since the implementation of the Goods and Service Tax by the Indian Government is still under a tight debate, it seems like Chandigarh’s businessmen have already braced themselves up for the new changes and setbacks that GST will bring to their businesses. Along with Chandigarh, Karnataka and Gujarat are also ready to change to the new indirect tax system.
Considered as the biggest change in the Indian constitution since its inception after Independence GST is being considered as a tide turner in India. It will solve lots of problems of the Indian population as they won’t have pay tons of taxes on every single thing they buy.
The GST and India
As far as our knowledge of taxes goes India has been a country that keeps shifting its tax policies in short periods of time. It is in India that a person has to give tax to pay tax which is the biggest problem that Indians face in everyday like. But, now it looks like everything is going to change with the coming up of the Goods and Service tax that will streamline the tax system of India. The maximum rate set under the GST Act 20117 is 20%.
Speculated to be implemented from the next month of July many financial experts of India are depicting that putting this new indirect tax system of GST in use will not be easy for Indian entrepreneurs and businessmen. But apparently it seems like the businessmen of various Indian states are actually in full form to face the GST tsunami and Chandigarh is among one of them.
Chandigarh & The GST
About 91% taxpayers, i.e. 16,305 have enrolled for GST in Chandigarh and more than 80% have enrolled from the state of Punjab. The Union Territory Goods and Service Tax Bill got the approval of the President on April 14, 2017, making Chandigarh the first in Punjab region to get the GST Act. If a person supplies goods or services or both within the periphery of Chandigarh he will charge the consumer both Central and UT GST.
The Goods and Services Tax (GST) will range from 0 to 28 % and in it’s for- tier tax structure of 5%, 12%, 18% and 28%, with lower rates for essential items and the highest for luxury and negative goods that would also attract an additional cess. The taxes that GST will replace are:
- Countervailing Duty
- Luxury Tax
- Entertainment Tax
- Central Excise Duty
- Service Tax
- Advertisement taxes
- Special Countervailing Duty
- Value Added Tax (VAT)
- Central Sales Tax (CST)
- Purchase Tax
- Taxes applicable on lotteries.
- Entry Tax
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