Current and GST Tax Process in India
I would like to share my knowledge on Current Tax process and GST Tax Process in India.
before going to know GST process first will see existing TAX process with example.
In India we have 2 types of Taxation 1. Direct tax 2.Indirect Tax below you can see detailed diagram
First will see Current Process:
Here will take one example for how tax will apply in current taxation system.
In this process we are paying tax more.
Note: GST will applicable only Indirect Tax. There is no change in Direct Taxes.
Here Government has subsuming of Central and State taxes. Now we can see only CGST, SGST and IGST.
below we can see the structure of GST.
as i said GST is applicable on only Indirect Taxes.
Below is the example for GST Process and tax deductions
thank you very much its very nice explanation
Thank you so much for the explanation. I have one doubt - I had heard that post implementation of GST, there will be high inflation for short term before actual benefit of GST is visible. Is it true? Can you explain with a simple example.
Thankyou It's very helpful
Thanks for being a big help , much appreciated.