Goods and service tax is a widely popular taxation scheme all around the globe starting from France, as the country was the first in introducing a detailed and modelled GST scheme. But here in India, the journey of GST is long 17 years stretched with the various government shutting the implementation for petty reasons. Now as the nation is on the verge of GST rollout, we can speculate the different reasons why the GST in India is unique and has the potential to make some worthy changes to the country’s prospective growth.
There are two significant points which have been seen as very crucial in making the GST scheme unique in its own way
- Four-fold double GST framework
- Receipt Matching Concept
Four Fold Dual GST System-Many nations on the planet have a solitary GST framework i.e. a solitary tax material all through the nation. In other cases, in nations like Brazil and Canada, there is a double GST framework predominant whereby GST is imposed by both the Union and state governments. India has embraced the double GST framework. For quite a while it has been challenged that Goods and Services Tax(GST) will be a solitary tax. Nonetheless, it is presently evident that “consolidated Tax” in a country like our own is only a myth.
GST in India will be fourfold, i.e. there will be four distinct sorts of GST applicable –
- CGST – Central Goods and Services Tax
- SGST – State Goods and Services Tax
- UTGST – Union Territory Goods and Services Tax
- IGST – Integrated Goods and Services Tax
It is important that idea of UTGST will become possibly the most important factor just when the exchange occurs inside a union territory “without council”. Union territories without governing body mean union territories regulated specifically by the leader of India or some other individual named after him. They are Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu and Lakshadweep. Union Territories with councils mean the union territories which have their own elected legislative assemblies and executive councils of ministers with state-like powers.
Advance, SGST/UT-GST tax credit of one state can’t be utilized to pay SGST/UT-GST of another state/union territory. For e.g., the SGST Tax credit accessible to Maharashtra state can’t be utilized to set off the SGST obligation of Gujarat State.
Read Also: Proper Definition of State GST, Integrated GST and Center GST
Invoice Matching Concept
In GST, each Business to Business (B2B) Invoice will be cross-coordinated with the filing done by the counter-party. As a matter of fact, if the tax is not paid by the provider then the buyer’s information tax credit will be automatically reversed. Henceforth, buyers should assume the part of vigilant officers of the legislature. Since, until and unless their providers have documented precise returns and have paid the tax, the buyers’ information tax credit is totally dependent upon it. A lot of bets are kept over the upcoming regime and its possibilities of taking over the Indian financial position towards some hike. This will be an incredible opportunity and time in which the nation can try its luck over its present condition to make it better.
