Introduction
The Goods and Services Tax (GST) is a comprehensive indirect tax on the supply of goods and services in India. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. GST has replaced many indirect taxes that were levied by the Central and State Governments. It has brought about a major change in the taxation system of India.
The introduction of GST has also had an effect on the Professional Tax. Professional Tax is a tax levied by the State Governments on the income of professionals such as doctors, lawyers, chartered accountants, etc. The rate of Professional Tax varies from state to state. With the introduction of GST, the rate of Professional Tax has been reduced in some states. In some states, the rate of Professional Tax has been increased. In some states, the rate of Professional Tax has remained unchanged. Thus, the effect of GST on Professional Tax varies from state to state.
GST Effect On Professional Tax, Is There Any Change In Professional Tax
No, there is no change in professional tax due to the implementation of Goods and Services Tax (GST). Professional tax is a state-level tax and is not affected by the GST.
The government of India has implemented Goods And Service Tax (GST) on 1 July 2017. GST has an impact on every business industry. When it comes to professional tax, as we all know at present every state government has its own professional tax levying policy and this policy varies from one state to another state. In 1988 the upper limit of professional tax was fixed to 2500 Rs. But now the finance ministry of central government of India has removed that ceiling limit. So finally there is no GST effect on professional tax.
GST Effect On Professional Tax :
What would be the status of professional tax after GST implementation from 1st July 2017. What is GST Effect on professional tax ?
As of now there is no effect on professional tax levied by various state governments even after implementation of GST. As usual every state government like Andhra Pradesh, Maharashtra, Karnataka, West Bengal, Gujarath, Madhyapradesh, Tamilanadu etc. The professional tax of every state will be remained as same.
The main aim of GST is to make one tax for one nation. But as of now GST has Four slab rates like 5%, 12%, 18% and 28 %. These taxes varies from product to product. But the real aim of GST will fulfill when only one slab rate will be implemented.
You May Also Like : The Government Of India Proposes Universal Minimum Wage Code Bill
What To Do If PF Amount Not Credited To Your Bank Account
Do share your opinions and doubts on GST effect on professional tax.
GST Effect On Professional Tax
The Goods and Services Tax (GST) has been implemented in India from 1st July 2017. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST has replaced many indirect taxes that were levied by the Central and State Governments. Professional tax is one of the taxes that has been subsumed under GST.
Professional tax is a tax levied by the State Governments on the income earned by way of profession, trade, calling or employment. It is a tax that is levied on the income of salaried individuals and professionals. It is a tax that is paid by the employee to the State Government. The amount of professional tax varies from state to state.
Under the GST regime, professional tax has been subsumed and is no longer applicable. The tax has been replaced by the Integrated Goods and Services Tax (IGST). IGST is a tax that is levied on the interstate supply of goods and services. It is a tax that is collected by the Central Government and is shared between the Centre and the State Governments.
The GST regime has brought about a major change in the way professional tax is levied. Under the GST regime, the tax is no longer applicable and has been replaced by the IGST. This has resulted in a reduction in the tax burden on the salaried individuals and professionals. The GST regime has also simplified the process of filing taxes and has made it easier for the taxpayers to comply with the tax laws.
Thus, it can be concluded that the GST regime has brought about a major change in the way professional tax is levied. The tax has been subsumed and replaced by the IGST, which has resulted in a reduction in the tax burden on the salaried individuals and professionals. The GST regime has also simplified the process of filing taxes and has made it easier for the taxpayers to comply with the tax laws.
