Goods and Services Tax (GST) will result in better tax compliance due to a robust IT infrastructure and consumers will be benefited as the overall tax burden on most commodities will come down, the government said on Wednesday (03 August).
"GST will result in better tax compliance due to a robust IT infrastructure. Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers," the Finance Ministry said in a set of FAQs on GST.
The Ministry on Wednesday 3 issued a set of FAQs and a total of 14 queries have been answered. To a question, how would GST be administered, the FAQs said keeping in mind the federal structure of India, there will be two components of GST ? Central GST (CGST) and State GST (SGST).
Both Centre and States will simultaneously levy GST across the value chain, it said. The FAQs said that for the implementation of GST in the country, the Central and state governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-government company to provide shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders.
"The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments," it said.
The FAQs also state that the additional duty of excise or CVD and the special additional duty or SAD presently being levied on imports will be subsumed under GST.
(PTI)
