Tax Uniformity

[Guest]

1.I wanted to know what is Uniformity in Tax.

2.Do people require to pay State sales tax even after VAT is in force.

3.How Tax evasion can be avoided using VAT?

4.Other than reduction in multiple indirect taxes what are other benefits of GST?

[Deepak Aggarwal]

GM,as my understanding, uniformity means there will be no difference in rates across country, only SGST or CGST rate will be in picture.In GST, people need to pay SGSTand CGST on same transaction of supply of goods or services.Tax evasion, as already explained, no diff.in rates, so no tax evasion.Major benefit of GST is to remove cascading effect of taxes, also same time no dispute regarding levy of vat or service tax will come to an end.Rest,it is named biggest indirect tax reforms, lets see what happened?

[Ganeshan Kalyani]

Hi, Goods and Service Tax -GST is a biggest tax reform. It is dual GST in India comparing to other countries where single GST persist. India GST will have SGST for State taxes like Vat, entry tax, professional tax etc. Central taxes like excise, service tax will be subsumed in CGST. There will be IGST charged for Interstate sale. Over and above there will be 1% additional tax levied on interstate transaction. The GST bill has passed in Lower House and need to get through RS and get the assent of Pesident to become an Act. GST is expected in 2016 as the present Gvt is very positive in making it possible.

AI Summary

GST uniformity: unified country wide rates with SGST/CGST for intra State and IGST for inter State supplies. Uniformity under the proposed Goods and Services Tax means a single country wide rate for a given supply, implemented through a dual structure: State GST (SGST) and Central GST (CGST) on intra State supplies and an Integrated GST (IGST) for inter State supplies. Central and State indirect levies are to be subsumed, enabling a common input tax credit system to remove tax cascading and reduce disputes and opportunities for tax avoidance arising from differential rates.