What is GST Bill ? Why it is so important for Government ?

GST Bill, officially known as The constitution (122nd Amendment) Bill, 2014 would be Value added Tax (VAT) to be implemented in India, from April 2016.

GST is an indirect Tax that brings together most of the taxes that are imposed on all goods and services (expect a few) under a single banner.

The GST can be divided into two main categories [Central GST & State GST]

1. Central GST — It will subsume the following taxes

Central excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty (CVD), Additional Duty of Customs (ADC), Surcharge, Educational and Secondary/Higher Secondary.

2. State GST — It will subsume the following taxes

VAT/ Sales Tax, Purchase Tax, Entertainment Tax, Luxury Tax, Lottery Tax, State surcharge & cesses leviable on the above as of now

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