Meaning of Single rate GST

Term Single rate GST

 

This post explains about Single rate GST.

Single-rate GST

Single rate GST means the one tax rates which levied on supply of goods or services.

But in India it is difficult to maintain single tax rate for all supply of goods or services due to diversity of people, states, goods e.t.c.

So government opted to adopt few number of tax rates which is used for levying on supply of goods or services.

The government has opted for four slabs for both goods and services — 5%, 12%, 18% and 28%. In addition, several items face zero levy, while bullion will attract 3% GST and luxury and sin goods that are in the top bracket will also attract a cess that will be used to compensate states for revenue loss.

In the current form of GST, the government has opted for six rate slabs for goods and services — zero, 5 percent, 12 percent, 18 percent and 28 percent and 28 percent plus cess for luxury goods. In addition, bullion will attract 3 percent GST. The cess on luxury goods will be used to compensate states for any revenue loss incurred due to GST implementation for five years after implementation. The loss is to be calculated with FY2016 as the base year and an annual growth of 14 percent over the period of compensation. Besides, under the current system, both central and state governments will have a share in tax collections.

The information on Single rate GST is detailed above.   Comment below your thoughts on Single rate GST.

 

 


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