Open AccessAn overview on goods & service tax
Author(s) -
M Kalpana
Publication year - 2017
Publication title -
journal of management and science
Language(s) - English
Resource type - Journals
eISSN - 2250-1819
pISSN - 2249-1260
DOI - 10.26524/jms.2017.36
Subject(s) - value added tax , indirect tax , tax credit , service (business) , tax deferral , state (computer science) , business , economics , tax reform , constitution , goods and services , public economics , state income tax , economy , computer science , law , political science , gross income , algorithm
Tax on sale or purchase of goods within a State as per Entry List II of SeventhSchedule of the Constitution is a State subject, and accordingly, VAT was been introduced bythe concerned States, in place of turnover taxes. The introduction of VAT ensured that creditof taxes paid on the inputs were available to a tax payer while discharging his output taxliability. This helped in minimizing cascading of taxes at the State level and in increasingcompliance because of the in-built mechanism of transfer of input tax credit. VAT led to asimplification of taxes at the State level