Since the time it was thought of as an idea, everyone has been talking about GST and it has been quite some time now since it has been in news. Finally it was passed in the Rajya Sabha and will be introduced soon. It is one the biggest tax reforms in India and it will have a huge impact on almost all the businesses.

What is GST ? – GST stands for Goods and Service Tax and it will be charged on manufacture and sale of goods. It stands to replace all the other indirect Taxes which are currently applicable in India.

Two parts – GST will be divided into two parts; Central GST (it will be charged by the centre) and the other is State GST (it will be charged by the State).

Aim of GST – The main purpose to introduce the GST is to make a single tax system which will include all the indirect taxes. The differences which occur due to intra-state transactions will also be reduced.

Taxes which will be removed after GST – As GST is set to create a single tax system, a number of taxes will be removed. Some of the taxes which will be removed after the GST will be passed are – Central Excise Duty, Service Tax, Special Additional Duty of Customs, Cess and surcharge for supply goods and services.

Rate of GST– It is expected that the rate of GST will be anything between 15%-19%, although, the rates are yet to be decided.