As the capital of India’s largest state of Uttar Pradesh, Lucknow offers a variety of facilities. With the Goods and Services Tax coming into effect on July 1, 2017, hectic preparations are ongoing. Controversies have been going on for some time regarding the usefulness of the GST system. Union Finance Minister Arun Jaitley has been the chief architect of the introduction of the GST.
Instead of separate central and state government taxes that existed earlier, GST will form a single indirect tax all over the country. The Constitution (One Hundred and Twenty Second Amendment) Act 2017 has made it official. In recent weeks the GST council has been drawing up the taxes applicable to various goods and services. GST services in Lucknow will help organizations deal with the new system.
GST is believed to be a simpler, compared to the earlier system. The single GST package will do away with several taxes that existed earlier like the excise and customs duties, services tax, value added tax etc. Similarly, octroi and inter-state levies are expected to end. Advertisement taxes, entertainment and entry taxes along with taxes on lotteries are expected to be bound together by GST.
Since GST is based on consumption, the state where goods and services are consumed receives the tax, not the state of origin. Handicrafts made in Meghalaya and sold in Karnataka means that taxes are collected by the Karnataka government.
Under GST, all transactions attract taxes, whether it is purchase, lease or sale, barter, and import of goods or services. The dual GST system means that both the Union and State Governments will impose taxes. Business within a single state will pay Central GST and that particular State GST taxes. When business takes place across states, the Central Government imposes an Integrated GST. Avail GST services in Lucknow to know all the details.