Throughout the world, over 160 countries have adopted the Goods and Services Tax while France remains the parent country. India adopted this new tax system on 1st July 2017 with the One Hundred and First Amendment of the Constitution of India, replacing the various cascading taxes imposed by the central and state governments. Inspired by Canadian model, India adopted a dual-GST structure which is seen as the biggest tax reforms in the history of India. It is an indirect tax which superseded various taxes including excise duty, service tax, additional customs duty, surcharges, state- level value added tax and Octroi (imposed by a political unit on certain goods on entry to the area). Exports and direct taxes including income tax, corporate tax and capital tax would be outside the ambit of GST. It levies tax on the sale, supply, manufacture and consumption of goods and services at the national level, but it is refundable to all parties involved in the production chain except the final consumer.
about 1 years ago