What is GST?

GST stands for Goods & Services Tax. GST is a value added tax (VAT) on goods and services and will be levied at all points in the supply chain. It is one of the most significant reforms under the Modi Government.

GST came into effect from July 1st, 2017, and will:

  • Create a wider tax base and a more efficient tax system
  • Eliminate the cascading or double effects (tax on tax) of applying taxes
  • Rationalize the tax structure
  • Make offset process convenient
  • Simplify compliance processes in India

GST will bring more transparency and simplify the current tax system in India, but it will also require a lot of work to implement, at national level, in each state, and in each individual company. Eventually, it will harmonize Centre and State tax administrations. Even though there are doubts that the Bill will be implemented in April next year, experts are positive that 2017 is a realistic target for the Bill getting realized and effective.

Get ready for GST in three easy steps with the M+V GST Tool.