GST in India
First of all the question is that what is GST Rates in India ? So it’s answer is that it stands for Goods and Services Tax, and it is imposed by the government to each product. And this tax will be paid by each and every person related to it, and that includes the manufacturer, wholesaler, retailer, and at the end consumer. And that is why each product will be saved from any other indirect taxation. Not just in India, but this Goods and Services Tax has been imposed in more than 140 countries in the world, and the reason is that it is considered as the preferred mode of taxation. Well, there are some countries which use dual GST policy. In which the first one is Central GST which is connected to the central government, and the second one is State GST which obviously will be connected to the State Government.
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And the same policy has been used in India as well. So, in short, you have to pay up two different Goods and Services Tax in India first one to the central government, and second to the state. And you must remember that you should use the separate accounts for the tax payments to both governments. You cannot use Input Tax Credit for the Central Government to the State Government. And same goes for State Government as well. AS expected Goods and Services Tax would leave a good impact on the trade of India. Plus it will also help out the businessmen to establish their businesses wisely.
Due to Goods and Services Tax now several other tax rates will be decreased, and even there are services which are not even charged for. Just take an example of exports, as now there will be no charges for the export of the goods so that the ratio of export increase. And the economic status of the country increases due to that. And the demand of Indian Goods will increase to the greater extent in the international markets. Plus it will also get India back into competition for the exported goods?