GST Model India - CGST, IGST, UTGST, SGST for India 2021. gst model of India. Goods and Service Tax, the forthcoming biggest reform in the taxation era of Indian Economy, on implementation facelifts the brand of India in world’s business friendly countries and boosts the economy by eliminating hindrance in the present indirect taxation structure. Till now, the varying taxation structure across the states within India created unhealthy competition among the states and hampered the overall growth with increased compliance cost to the business environment.Goods and Services Tax would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace the various indirect taxes levied by the Central and State governments. France was the first country in the world to introduce GST system in 1954 and almost 160 countries across the world have already implemented the GST. Now check more details about "GST Model For India - Proposed, Central and State GST" from below...
DEFINITION OF GOODS & SERVICES
GST Model India - Central and State GST
TAXES LIKELY TO BE SUBSUMED IN GST
|CENTRAL TAXES ||STATE TAXES |
GST – Present vs. Proposed
GST Models – World Wide
- GST at Union Government Level Only (Central GST)
- GST at State Government Level Only (State GST)
- GST at both, Union and State Government Levels (Concurrent GST)
Central GSTUnder CGST, Both Central and State government combine their levels to bring into existence a single unified taxation system at the center level, with appropriate revenue sharing arrangement among them and leaving no room or very little for tax levy by state government..
- CGST on supply of goods or services or both will be charged for within the state transactions.
- Tax revenue is meant for Central Government and tax rates will be common all over India.
- The expected rate of CGST is around 9%.
State GSTUnder SGST, only States alone levy GST and the Centre withdraws power to levy the tax completely on goods or services. This would significantly enhances the revenue generating power of states and the center offsets its revenue loss by reducing its fiscal transfer benefit to the states or by suitable revenue sharing arrangement if required. State GST increases the compliance cost to business houses as it will have to comply with tax laws of each state within same country and brings unhealthy competition among the states.
- Tax revenue is meant for State Government and tax rates will be decided by each State
- The expected rate of SGST is around 9%.
- IGST is charged on interstate movement of G&S.
- Tax revenue is shared by both Central Government and State Government.
- Tax rates will be common all over India.
- The expected rate of IGST is around 18%. Tax on imported goods will continue at a rate equal to IGST. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.