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Further Mr Tapir said that ” For the first time, consumers will get to know the actual amount of taxes they are paying for goods and services in the form of a single GST rate that will be split between central and state governments”. “At present, what is shown in an invoice is the VAT and in certain cases, the service tax levied by the central government”. This does not cover parts of taxes borne by raw materials and services used by various intermediaries which get added to the final price of the item purchased but are not visible in the invoice. The efficiency of GST is expected to bring down tax burden and improve transparency” added Mr Tapir.
Meanwhile, the historic GST or goods and services tax has become a reality. The new tax system was launched at a function in Central Hall of Parliament on Friday midnight. GST, which embodies the principle of “one nation, one tax, one market” is aimed at unifying the country’s $2 trillion economy and 1.3 billion people into a common market.