All about GST

  • Goods and Services Tax is a comprehensive indirect tax which is to be levied on the manufacture, sale and consumption of goods and services in India.
  • GST eliminates the cascading effect of taxes because it is taxed at every point of business and the input credit is available in the value chain.
  • France was the first country to introduce GST system in 1954.
  • More than 140 countries have implemented the GST.
  • The Genesis of GST occurred during the previous NDA Government under Atal Bihari Vajpayee Government when it set up the Asim Dasgupta committee to design a model for GST. 
  • The UPA Government took the matter further and announced in 2006 that this tax would be introduced from April 1, 2010. However, so far it was not introduced.
  • All the GST bills including Constitution (101st Amendment) Act have been passed now and GST is set to come into force from July 1, 2017.
  • GST would replace almost all vital indirect taxes and cesses on Goods & services in the country.
  • Among the taxes levied by centre, GST will subsume the following:
    • Central Excise Duty & Service Tax,
    • Duties of Excise (Medicinal and Toilet Preparations),
    • Additional Duties of Excise (Goods of Special Importance),
    • Additional Duties of Excise (Textiles and Textile Products),
    • Additional Duties of Customs (commonly known as CVD),
    • Special Additional Duty of Customs (SAD), and
    • Central Surcharges and Cesses.
  • Among the state taxes that would be replaced by GST include
    • State VAT,
    • Central Sales Tax
    • Luxury Tax,
    • Entry Tax (all forms),
    • Entertainment and Amusement Tax (except when levied by the local bodies),
    • Taxes on advertisements,
    • Purchase Tax,
    • Taxes on lotteries, betting and gambling, and
    • State Surcharges and Cesses.

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