GST Regime Previous Indirect Tax System : A Comparative Analysis and Understanding

Author:Aarti Mundan

Abstract:
In India, GST replaced almost all the indirect taxes and brought a common market for easy tax structure and simple tax payment. It is being assumed by the leading Market Players that the cost of tax on all the commodities will lower as the result of implementation of GST. GST is commonly applied to both goods and services in a comprehensive manner. It is thus, a value-added tax levied at all points of the supply chain. Approximately 17 taxes have been eliminated with their comprehensive effects through GST Regime. The complications under Previous Indirect Taxation System have been made easy and simplified upto an unexpected results. The incidence of tax is spreaded over to all. And, the divide between the central taxation and state taxation is clearly demarcated through GST Regime. Now, the Government is able to maintain the entire undirect tax records through online electronic system for more transparent and good governance. Government can reduce administrative comliance and effectively run tax net in the country. In this paper the author has done a Comparative Analysis and Understanding of Previous Indirect Tax System and present GST System.

Keywords:Key words: MODVAT, GST, CGST, SGST, CVD, SAD, CST.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)