GST Overview, Goods and Service Tax Law 2017 (GST Bill Overview). The introduction of Goods and Services Tax (GST) is a very significant step in the field of indirect tax reforms in India. In the pre GST regime, there was multiplicity of indirect taxes. The central excise duty and service tax was levied by the Central Government, while VAT and Entry Tax was levied by the State Government. Moreover, there was cascading effect of taxes, i.e. tax on tax, at various stages as credit of taxes levied by one government was not available against payment of taxes levied by the other.
GST is a comprehensive indirect tax levy subsuming all central and state levies with a single unified value added tax transforming the Nation into one single market. Major Central and State taxes are subsumed into GST which will reduce the multiplicity of taxes, and thus bring down the compliance cost. With GST, the burden of CST will be phased out
Find Complete details for GST Bill, The Goods and Service Tax Bill or GST Bill is officially known to be The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 and it would be a Value added Tax (VAT) to be implemented in India. GST in India, Here we are providing complete information for GST Bill. Now you can scroll down below and check more details for “Goods and Service Tax Bill (GST Bill) – An Overview”
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GST Overview, Goods and Service Tax Law 2017 (GST Bill Overview)
As per Statement of Objects and Reasons appended to the Constitutional Amendment bill the object of GST is :
- a) to have common national market, and
- b) avoid cascading effect of taxes.
From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods. Introduction of GST will make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and selfpolicing character, would be easier to administer.
Unfolding the pages of history, the idea of national GST in India was first mooted by Kelkar Committee in the year 2004. The Committee recommended national GST. The first announcement for the introduction of GST was made in Budget Speech on 28th April, 2006 by the then Finance Minister, P. Chidambaram. The proposed target date to introduce nationwide GST was 1st April, 2010. The Empowered Committee of State Finance Ministers (EC) which had formulated the design of State VAT was requested to come up with a roadmap and structure for the GST.
Joint Working Groups of officials having representatives of the States as well as the Centre were set up to examine various aspects of the GST and draw up reports specifically on exemptions and thresholds, taxation of services and taxation of inter-State supplies. Based on discussions within and between it and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spells out the features of the proposed GST and has formed the basis for discussion between the Centre and the States so far.
The Constitution of India was amended from 16th of September,2016 to make provision for the introduction of GST. By this amendments in the Constitution both the Centre and the States shall have concurrent power to levy and collect the GST on both goods and services.
RELEVANT ACTS PASSED BY THE PARLIAMENT AND STATES
Roll out date for GST was fixed at 1st July, 2017. Following are Acts under GST which were passed and received the President’s assent on 12th April, 2017-
- (1) The Central Goods and Service Tax Act, 2017(CGST),
- (2) The Integrated Goods and Service Tax Act, 2017(IGST),
- (3) The Union Territory Goods and Service Tax Act, 2017(UTGST),
- (4) The Goods and Service Tax(Compensation to States) Act, 2017(Compensation Cess).
The implementation of GST will help create a common Indian market and reduce the cascading effect of tax on the cost of goods and services. It will impact tax structure, tax incidence, tax computation, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. Thus we are hoping it comes into existence as soon as possible.
Must Read –
- GST Definition
- When will GST be applicable
- What is IGST
- FAQ on IGST Law (GST)
- Salient Features of GST
- Key Features of GST
- GST Annual Return
- Tax layers under proposed
- Filing of GST Returns
- Impact and Relevance of GST
- GST Rates
