Viral Graphic Comparing UPA and NDA Govt Taxes on Commodities Is Misleading

In 2017, the government announced the implementation of a unified system on tax percentages on goods and services, called the Goods and Services Tax (GST).

GST works to segregate all good and services into different tax slabs.

GST aimed at eliminating the cascading effect of tax on tax system that preceded it.

To put it simply, VAT cannot be compared to GST, by virtue of it being varied across states.

“VAT has a very different product value addition, composition, and process of imposing taxes as compared to GST. So, GST is mostly levied at the end of the final price computation,” Mohan told The Quint.

He further said, “While we can make comparison by the way of GST and VAT as two forms of similar indirect taxes, but the processes or the mechanisms by which each of these are imposed are very different.”

While it’s true that the tax on certain products did reduce after the introduction of GST, but to compare it with the pre-GST rates of just some products is selective and misleading.

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