Goods and Service Tax a Bold Step in Indian Economy
VAT was introduced in the tax system of India on 1 April 2005. VAT is a major improvement of the local sales tax. The advantage of VAT at the provincial level is that it is a multi-point tax that is set off against the taxes paid for the purchase and that prevents repeated taxation of the same product. Despite the success of VAT, certain restrictions remain on the central and national VAT structure. On 6 July 2009, GST announced that it would take effect from April 2010 to address the problem that Pranab Mukherjee, then Minister of Finance, did not comment on the pot. Goods and Services Tax (GST) is actually a comprehensive indirect tax reform in the country. The integration of taxes on goods and services will provide India with a world-class tax system and improve tax collection. It will disrupt the discriminatory treatment of production and service sectors. It will lead to the abolition of taxes such as tax, central sales tax, and sales tax at state level, immigration rights, and stamp duties, license fees for communication, sales tax, excise duties or electricity tax. GST is a business-friendly environment and price levels and inflation rates will be overtime when a uniform tax rate is applied.