Our tax laws are preparing to go through a historic change. GST or Goods and Services Tax is being prepared to replace existing taxes such as VAT, service tax, excise duty and several local state taxes and levies.

GST is expected to have a far reaching impact. Whether you run a business or provide a service, however big or small, it is very likely GST will impact you.

The government is preparing for a start date of 1st July 2017 for GST.

GST applies to all Businesses

Businesses includes – trade, commerce, manufacture, profession, vocation or any other similar activity, irrespective of its volume or frequency. It also includes supply of goods/ services for starting or closure of a business.

Services means anything other than goods. It is likely that services & goods carry a different GST rate.

![images-6.jpeg](https://steemitimages.com/DQmUtsdMUrZGzozjN2RSfsQ6MfZPZ4AYAT7cMBTsbvebcGb/images-6.jpeg)The Rajya Sabha has cleared a  constitutional amendment to bring about a system of Goods and Services Tax (GST) in India. It is perhaps the most important economic reform item on the Narendra Modi government’s agenda. This is one reform which affects all of us.

It also happens to be a complicated reform as most taxation matters usually are. This blog attempts to present an overview on GST and explain why it is expected to make a difference to all of us.

![2017-07-01-21-19-22-.jpeg](https://steemitimages.com/DQmPU9t4FUhMYAZwTZRmSJYLEuzutrxGuUbAtcNmHedfhxM/2017-07-01-21-19-22-.jpeg)How will GST help?

Goods and Services Tax (GST) is an indirect tax reform which aims to  remove tax barriers between states and create a single market. For that to happen the constitution first needs to be amended to remove different layers of governments’ exclusive powers to levy taxes. Once this step is taken, the tax barriers between states, and centre and states will disappear.