GST : Analysis – UPSC GS3

Vision behind GST: GST was launched in July,2017 with the vision of  “one nation one tax”. It was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices. Many exemptions, along with different tax rates, have been accommodated to protect the interests of different stakeholders. Key features of GST: GST Council and GSTN: …

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Retrospective Taxation Issues – UPSC GS3

Context: Government has decided to scrap retrospective taxation. Adverse decision of International Arbitration Court in Cairn case. Appeal by Indian authorities against Vodafone case decision. Vodafone and Cairn cases: An international arbitration court has turned down tax authorities’ demand for 22,100 crore in retrospective taxes and penalties relating to the Vodafone’s acquisition of an Indian …

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Need of more Federal Tax Structure – UPSC GS3

Current Tax sharing structure between Centre and State: In India, direct taxes are collected entirely by the Central government. State governments get funds from the Central government according to the Finance Commission’s recommendations. Though this is based on a formula, often politics intervenes, leading to discrepancy in receivables of different state. After the Fifteenth Finance Commission recommendation, the Central government is supposed to distribute 41% of …

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