GST in India : What is GST?

GST : Goods and Sevice Tax

GST, also known as Goods and Services Tax, is slated to be a landmark reform of indirect taxes in India. All central and state taxes will come be merged into GST once it comes into effect.

Goods and Services Tax (GST) is a part of the proposed tax reforms that center round evolving an efficient and harmonized consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the central and state levels. Each of the systems needs to be reformed to eventually harmonize them.

Implementation Phase

For the first year of implementation, the finance minister proposed 3 rates – a maximum rate of 20% and a lower rate of 12% for for goods, and 16% for services. According to him, in the 2nd year the rates should be 18%, 12% and 16%. By the third year, the finance minister said GST should move towards a single rate of 16%.

The revenue from GST will be shared equally by the states and centre.

Related posts:

1. GST White Paper
2. MTS Mobile Service, India, mtsindia.in, website
3. amfiindia : amfi India : Association of Mutual Funds in India
4. Forbes India Rich List 2009 : Richest Indians : Richest Men in India
5. Cabinet Ministers of India, Indian Cabinet Ministers