GST (GOODS AND SERVICES TAX)
GST
HISTORY
- France was the first country to introduce it.
- In India in 2000 NDA (ATAL ji Government) setup empowered committee under Asim Das Gupta to design GST
- IN 2006-07 Union Finance Minister Chidambaram ji announced GST would be implemented from April 1, 2010 and asked the empowered committee with state finance ministers to submit their views.
- 2008 The reports were received by GOI under leadership of Manmohan singh ji.
- 2009 Committee of Principle Secretaries of the states setup Tax Rate Proposal : Mostly the GST rates are between 15-20% world over and the same is expected for India.
- 2011 Constitution 115th Amendment Bill introduced to enable state legislatures to frame laws for levying GST ,but bill lapsed.
- But dispute rose among the states and the center.
- Committee in 2011 under chairmanship of Nandan Nelekeni and second committee 2012 also seven member committee formed under chairmanship of Yogendra Garg
- 2013 The Goods and Services Tax Bill is likely to be taken up in the winter session of Parliament……”par ye ho na saka”
GOODS AND SERVICES TAX
- It is an indirect tax that will lead to the abolition of all other taxes such as, central sales tax, state-level sales tax, excise duty, service tax, and value-added tax (VAT). Both the state and the central governments will impose GST on almost all goods and services produced in India or imported into the country.
- GST is a proposal of tax in India which would be a comprehensive tax after merging many indirect taxes.
- Not only it will replace Central Indirect taxes but will replace state levied indirect taxes too
- In India, a dual GST is being proposed wherein a central goods and services tax (CGST) and a state goods and services tax (SGST) will be levied on the taxable value of a transaction
Features
- It will be collected on VAT method ie tax at every stage of value addition
- It will be imposed at an uniform rate @ 20% (Centre share= 12 % and state share=8% respectively).
Not affects
- Exports will not be subject to GST. Direct taxes, such as income tax, corporate tax and capital gains tax will not be affected.
GST benefit the economy
- It will simplify India’s tax structure
- common market across states because tax are equal in every state
- Report by the National Council of Applied Economic Research, GST is expected to increase economic growth by between 0.9 per cent and 1.7 per cent.
Important fact
- The GST can be implemented only through a Constitutional Amendment Bill, which means it needs to be approved by not less than two-thirds of the members present and voting in each House of Parliament. The GST must also be ratified by the legislatures of at least one-half of the states.