Why GST Replaced ? List Of Taxes Before GST

TAX IMAGE

TAX :- It is a compulsory contribution made by people to the government,because government has to carry on some works from where will they do it ? It is done from the income that is earned through these taxes.

TAX is divided into two types,they are:-

(1)Direct tax :-It is the one in which the burden falls on the person himself,he cannot shift it.It is progressive in nature.

(2)Indirect tax :-In this the burden shifts from person to person on goods(i.e from manufacturer to retailer and from retailer to consumer).

 List of Direct Taxes :-

1. Income Tax
2. Capital Gains Tax
3. Security Transaction Tax
4. Perquisite Tax
5. Corporate Tax

Income TAX :- If a person takes a salary, then from his salary some percent of money he will pay to the government  directly without the third person.

Capital Gain Tax(CGT) :- If a person sell his property then from the gain which he will get have to pay some percent of money to the government which is a direct process

CGT was divided into two different types.they are

(1)Short Term Capital Gain Tax (STCGT):- It will be charged when the investment held for less than year or a year before being sold.

(2)Long Term Capital Gain Tax (LTCGT):- It will be charged for the investor for holding the investment more than year before selling.

Security Transaction Tax (STT) :- Some people hide their profit in order to escape from paying TAX.But the government collects TAX for every single transaction which is known as Security Transaction Tax.

Perquisite Tax :- 

The term perquisite means BENEFITS or FACILITIES.

it denotes a personal advantage for example " a person is working in your home as a servant just to help you n you are not paying any money to him then it is not a perquisite but when the person who is working in your home as a servant to help you but taking some money (i.e for his benefit) then it is said to be perquisite".

Corporate Tax :-A corporate Tax is a Tax imposed on the Net profit of corporation that are tax defined entity level on particular jurisdiction.

List of Indirect Tax :-

1. Sales Tax
2. Service Tax
3. Value Added Tax
4. Custom Duty
5. Excise duty
6. Anti Dumping Duty
7. Professional Tax
8. Dividend Distribution Tax
9. Municipal Tax
10. Entertainment Tax
11. Stamp Duty
12. Gift Tax
13. Entry Tax
14. Infrastructure Cess
15. Education Cess
16. Toll Tax
17. Luxury Tax
18. Wealth Tax
19. Swachh Bharat Tax
20. Central Sales Tax(CST)

The percentage of indirect taxes differs from type to type.It varies from place to place,business to business.We are paying more than one indirect TAX to government(i.e cascading) due to this the price of products increasing nearly 30-47% TAX we are paying to govt indirectly.

To overcome this problem INDIAN govt has introduced GST(Goods and Sales Tax)

GST will make some product price cheaper and we will be free from paying those many taxes indirectly. GST was replaced by all indirect TAXES and it does not have any relation with DIRECT TAXES.

GST

GST came into existence on july 1st 2017 as said by ARUN JAITLEY(Finance Minister of INDIA) From July 1st we can say that  INDIA "ONE NATION ONE TAX".

ADVANTAGES OF GST :-

1. It will replace all major indirect TAXES
2. It will remove cascading

There will be NULL(0%) tax on some products after GST. The main advantage is for the people who are buying big products like cars,bikes,homes will be charged with less TAX.