Progressing Towards Goods And Services Tax In India

Goods and Services Tax (GST), which is considered the most significant tax reform since independence, proposes to subsume a majority of the indirect taxes prevailing in India and will change the way business is done. It will bring about a structural change in the current indirect taxation system by propagating an ideal consumption-based indirect tax system.

The GST Bill proposes a 'Dual GST structure' consisting of Central GST (CGST) and State GST (SGST) levied on intra-state transactions, and Integrated GST (IGST) which is a combination of CGST and SGST, levied on inter-state transactions including imports. Under the GST regime, GST paid on procurement will be allowed to be set off against the GST liability on the output.