Essay on service tax

The GST is a uniform indirect tax which has replaced all central and state indirect taxes, treating whole of India as a single market. The most significant aspect of GST is that, it follows a uniform tax rule for specific products, throughout India.

The anti-profiteering clause has been inserted in the GST Act to protect the interest of the consumers. India is a developing nation, still struggling with the issue of unemployment.

A marginal increase in the cost of borrowing is also applicable for home loans, auto loans and personal loans. GST in upcoming will prove a game changer and will certainly broaden India's tax base.

However, experts are hopeful that the increase in cost may not last in the long run as banks will pass on the benefit of input tax credit, under GST, to their customers.

However, we may be entitled to an additional credit against taxes that have been subsumed under GST. Under GST, there is an option for small businesses to lower taxes. We pay service tax on various services availed from banks, mutual fund and insurance companies. GST has brought all of them under a single roof and has reduced their cascading effect.

Essay on service tax

While the impact of the Goods and Services Tax rollout will touch every industry in India, the impact it has on the financial sector needs to be looked at in detail. The tax came into effect from 1st July and replaced the existing multi level central and state taxes. In some countries,VAT is the substitute for GST,but conceptually it is a destination based tax levied on consumption of goods and services. There has been a lot of discussion but very little clarity on how things will change for the average Indian post GST implementation, hopefully this article should help. This would make the Indian market more competitive than before and create a level playing field between large and small enterprises. The benefit of these small businesses takes place due to the composition scheme. It is one of the two taxes levied within a state, other being the CGST. GST certainly subsumed several taxes and levies. Gst will definitely see the sun in the near future as the glimpses of its growth is evident in the prevailing growth of Indian economy already. It has already been enacted by many countries and has reaped positive fruits for them. GST is expected to create new employment opportunities in the field of taxation and accountancy along with vacancies in the manufacturing sector. It consists of the central finance minister as well as the finance minister of the states.

Furthermore, the imposition happens with the recommendation of a federal council. GST has been proposed in the Indian Parliament few months back and economists are deep diving to study its implications and feasibility of implementation throughout the country.

Service tax is an indirect tax and the Central Board of Excise and Customs CBEC is responsible for the formulation of policies related to levying and collecting indirect taxes.

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