Goods & Service Tax (GST)

The introduction of Goods and Services Tax is a significant reform in the field of indirect taxes in our country. Various taxes levied and collected by the Central Government and the respective State Governments will be replaced by one single name of TAX called the Goods and Services Tax (GST). The GST is a multi-stage value added tax levied on the consumption of goods or services or both. A “Dual GST” model has been adopted in view of the federal structure of our country. The Central Government and the State Governments will simultaneously levy GST on every supply of goods or services or both which, takes place within a State or Union Territory. Further the GST is categorised as Central GST (CGST), State GST (SGST) and Union Territory GST (UTGST). The IGST is levied on inert-state transactions or supply of goods or services between two states or UTs. IGST equals CGST + SGST or UTGST. The erstwhile Central Excise and Service Tax Department, now known as the Central GST & Central Excise Department, and all the States GST Department and UTs GST Department, are the authority to levy and collect the GST and also to prevent the leakage of the Government Revenue. The Directorate General of GST Intelligence (DGGI) are also responsible to collect the intelligence and information, and analyse the same to prevent the evasion of GST, and also book the persons responsible for evasion.