Goods And Service Tax and Its Impact on Information Technology

Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level under which no distinction is made between goods and services for paying of tax. It is mostly substitute all indirect taxes levied on goods and services by the Central and State governments in India. It was implemented from 1st July 2017 onwards. One of the main objective of Goods & Service Tax (GST) would be to eliminate the doubly taxation i.e. cascading effects of taxes on production and distribution cost of goods and services. Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax based on VAT principle. The tax rate rule and regulations are governed by the GST assembly which involves of the finance minister of central government and all the states.the gst are divided into 5five different slabs for collection of tax 0%,5%,12%,18% and 28%. GST is both beneficial and damaging for different sectors in our nation. Information technology in India is an industry consisting of two major components: IT services and business process outsourcing (BPO). Here main focus is on the impact of GST on IT and Digital marketing industries.