La Exactlly Software Pvt. Ltd.
Home  /  GST  /  Differences between GST and Current Tax Regime
Differences-between-GST-and-Current-Tax-Regime
02 June 2017

Differences between GST and Current Tax Regime

GST GST, Understanding GST Leave a Comment

The Goods and Services Tax, popularly known as the GST is a single unified tax system whose primary focus is to consolidate the several tax systems that have plagued India’s current tax regime. You may have heard of One Nation – One tax – this concept has become popular in an attempt to do away with the complex taxes that are levied, often times unfairly, within the country. This GST is so hyped because it has become the biggest tax reform to have taken place in India since independence.

People are concerned as to the impact that the GST reform will have and most importantly, crave to understand the differences in the current tax regime as opposed to the GST. What are the changes it will bring? How will it affect the taxpayer?

As per the GST, geographical boundaries are expected to be done away with so that the entire country can work together in a single marketplace. Under the GST system, taxes are proposed to be collected and shared amongst the centre, states and union territories on the basis of the nature of the transaction so conducted – whether intrastate or interstate.

The various tax components that have been segregated are –

  1. Central GST – applicable to supplies taking place within the state and to be shared with the centre.
  2. State GST – applicable to supplies taking place within the state and to be shared with the state.
  3. Integrated GST – applicable on supplies taking place interstate as well as imports and to be shared between the centre and the state.

The current tax regime has various taxes which have now been subsumed with the advent of the GST in the following manner –

  1. Central Tax to include Excise Duty, Service Tax, ADE, Surcharge and cess, CVD and SAD.
  2. State Tax to include VAT, CST (to be shared between the state and centre), purchase tax, luxury tax, surcharge and cess, entry tax.

The taxes that have been subsumed under the GST are as follows –

  1. Central GST to include – excise duty, service tax, ADE, surcharge and cess
  2. State GST to include – VAT, purchase tax, luxury tax, entry tax, surcharge and cess
  3. Integrated GST to include – CST, CVD and SAD

 

 

Related posts:

  1. What You Need to Know About Union Territory GST
  2. The GST Era – Changes To Bring With Your GST Product
  3. Conditions for Transitioning under the GST Regime
  4. CENVAT and VAT – Transitioning under the GST
Highlights-of-the-GST-Model-Law
 Previous Article Highlights of the GST Model Law
Basics-of-Input-Tax-Credit-and-Its-Distribution
Next Article   Basics of Input Tax Credit and Its Distribution

Related Posts

  • how-to-integrate-gst-accounting-with-erp

    How to Integrate GST Accounting with ERP

    August 24, 2017
  • invoice-rules-under-GST

    Invoice Rules Under GST Regime

    July 31, 2017
  • impact-of-GST-industry

    Impact of GST on Major Industry Verticals in India

    July 18, 2017

Leave a Reply

Cancel reply

Quick Access

GST
Transitioning under the GST Regime
Applying for a Fresh Registration under the GST Regime
GST Registration Basics – All You Need To Know
Setting Off Input Tax Credit Against Tax Liability
Basics For Availing the GST Input Tax Credit
When Can You Not Avail of Input Tax Credit?
Input Service Distributor as a Positive Boost to the GST
Basics of Input Tax Credit and Its Distribution
Differences between GST and Current Tax Regime
Highlights of the GST Model Law
All You Need to Know about GST
The GST Era – Changes To Bring With Your GST Product
What You Need to Know About Union Territory GST
Read More GST Blogs

Categories

  • Thoughts
  • News & Announcements
  • Exactlly ERP
  • Exactlly HRMS
  • Exactlly CRM
  • GST

Recent Posts

  • What do we need to know about the Global Cloud ERP Market?
  • Reduce Employee Turnover Effectively With HRMS Software
  • Measuring the Potency of Cloud ERP Implementation Methodology
  • 10 Functions of Human Resource Management System for 2022
  • Understanding the Landscape of Integrated ERP Systems in the Future

Popular Posts

Social Media

Copyright © La Exactlly Software Pvt Ltd. All rights reserved.
Go to mobile version