Comparison of Tariff Rates: GST and Ante GST

Abstract

GST is a broad based, Single , Comprehensive Tax levied on Goods and Services  at each point of Sale or Provision of Services, in which the seller or service provider may claim the input credit of tax which he has paid while purchasing the goods or availing services. Under GST, the final consumer will bear the GST charged by last dealer of supply chain.

In earlier taxation system there was a problem of cascading of taxes i.e. tax on tax but GST helps to remove it. Also there were many more problems and cons in earlier taxation system which lead to implementation of GST in India on 1^stApril 2017.

Although there were various difficulties in its implementation but, through passing 17 phases it is now implemented in India and thereby it has created history in indirect tax reforms.

In Ante GST there were various tariff  rates for goods and services but, GST has 5 slab rates :0%,5%,12%,18%,28% . There is a great change in the tariff rates of both the taxation system. Like in Ante GST tariff rate for coffee and tea was 6% but in GST it is 5%, also in case of tooth powder Ante GST tariff rate was 26% and GST rate is 18%.

These tariff rates are not stable. These are continuously changing. Till now 17 times meetings are held to decide tariff rate.  Everyday there is some change in tariff rates but these rates would be stable in coming years.

This paper is an attempt to compare the tariff rates of Ante GST and GST.