All you need to know about Goods & Services Tax

When we took a quick vote on the budget expectations from the common people, the unanimous
verdict was Implementation of GST is the need of the hour. Before we get into the nitti gritties let
us get to the ABCs of Goods & Service Tax
What is GST ?
It is a single tax system, which can replace multiple taxes such as value-added tax, excise duty,
service that are levied at different points in time. It levies a comprehensive tax on the manufacture,
sale and consumption of goods and services in the country.
Why should it be implemented
There are heterogeneous state laws on VAT, which stresses the need for a single uniform GST .
This will put all the states on a level playing field and will facilitate widening the coverage of tax base,
improve tax compliance and re-distribute the burden of taxation equitably among manufacturing and
services. This will put some healthy revenues in the countrys pockets.
Why hasnt it been implemented?
Earlier, state governments have been of the view that implementation of GST can cause revenue
losses. However, now most States have agreed to a Compensation Formula that will compensate
them for their losses. Secondly l, it is also imperative to have a robust country-wide IT network and
infrastructure to make the implementation seamless. This IT network work is still in progress.
When is it expected to be rolled out ?
The implementation of the GST may now happen from Fiscal Year 2014-15. May be the Union
Budget will make way for it!