Goods & Services Tax

What is GST?

The Goods and services tax is a uniform indirect tax levied on all goods and services produced in the country and all goods and services imported from abroad. GST will be a single uniform indirect tax which will treat India as one market. It will replace all Central and state indirect taxes like CENVAT, excise, customs, VAT, state excise, etc. The GST will enable a benefit to the economy from a fall in product prices, a single price of a product across the country, lower working capital for companies and a more simplified tax system.

The Goods and Services Tax (GST), which will replace the State VAT, Central Excise, Service Tax and a few other indirect taxes will be a broad-based, single, comprehensive tax levied on goods and services. It will be levied at every stage of the production distribution chain by giving the benefit of Input Tax Credit (ITC) of the tax remitted at previous stages. GST is based on a destination-based taxation system, where tax is levied on final consumption. It is expected to broaden the tax base, foster a common market across the country, reduce compliance costs, and promote exports. The GST will be a dual tax with levy by both Central and State tax administrations on the same base.

The GST demands a well-designed and robust IT system for realizing its potential in reforming indirect taxation in India. The IT system for GST would be a unique project, which will integrate the Central and State tax administrations.

Software launch expected shortly after Government announcement.