Explained: How Will GST Work?

The Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago, at last looks set to become reality. The Constitution (122nd) Amendment Bill comes up in Rajya Sabha today, on the back of a broad political consensus and boosted by the ‘good wishes’ of the Congress, which holds the crucial cards on its passage. Here’s how GST differs from the current regimes, how it will work, and what will happen if Parliament clears the Bill.

The Goods and Services Tax (GST), the biggest reform in India’s indirect tax structure since the economy began to be opened up 25 years ago, at last looks set to become reality. The Constitution (122nd) Amendment Bill comes up in Rajya Sabha today, on the back of a broad political consensus and boosted by the ‘good wishes’ of the Congress, which holds the crucial cards on its passage. Here’s how GST differs from the current regimes, how it will work, and what will happen if Parliament clears the Bill.

  1. S
    Sankaran Krishnan
    Aug 6, 2016 at 2:14 pm
    Very well explained and the difference in GST and Non-GST and yes it is consumers who are going to be advantageous through this GST and hope the tax system will be simplified accordingly and over the years the concept of With Bill will erase !! For those who indulges it impose heavy fines and make him in Advance the tax and make them run from pillar to post to get refunds by submitting the monthly returns for the next Five years !!!
    Reply
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      bs
      Aug 8, 2016 at 3:36 pm
      Looks good on paper. Let's wait and see how the consumer is benefited at the end.lt;br/gt;Check and balances in the w process require to be strengthened to ensure end benefit of GST to reach in the hands of consumer.
      Reply
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        Natesh
        Aug 9, 2016 at 11:54 am
        Knlt;br/gt;it is astonishing that the example shown in non-GST regime is so different from GST regime. I would like to inform all that even in non GST era, there is Cenvat credit adjustment. It is absolutely wrong to show that there is no credit adjustment. Kindly explain the public with real picture as to how much cenvat credit is being earned by the manufacturer which buying the raw materials for a dress without which it would be incorrect to explain the public. Hope my suggestion is appreaciated.
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          Natesh Acharya
          Aug 18, 2016 at 12:17 pm
          Who will bear the burden of Rs. 40 in GST regime? Center or State?
          Reply
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            Harsha Patruni
            Nov 16, 2016 at 2:02 pm
            As Natesh mentioned, you get CENVAT credit even in case of Non GST, this video is wrong!!
            Reply
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              Harsha Patruni
              Nov 16, 2016 at 2:08 pm
              But in non GST, cenvat for VAT is not availlable. In this way cascading effect could be reduced
              Reply
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