Goods and Services tax or GST is actually an indirect tax which is applied when a customer buys a good or a service. This tax is an individual tax for the whole country. This tax aims to make India a united market. The main theme of this tax is to apply a single tax on the supply of goods and services. GST will remove different layers of taxation which are purchase tax, VAT, Entertainment tax, etc. Once GST is applied, the tax barriers between states, and centre and states will disappear.
GST will make manufacturing cheaper but it will also make services costly. Under GST, a lot of manufactured goods will be cheaper. But the price of service is expected to be increased under GST.The rate of tax under GST is expected to be 18% which will eventually makes goods cheaper
GST is expected to be applicable from 1 July 2017.
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