GST, also known as the Goods and Services Tax is defined as the giant indirect tax structure designed to support and enhances the economic growth of a country. More than countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in and the constitutional amendment for the same was passed by the Loksabha on 6th May but is yet to be ratified by the Rajya sabha. However, there is a huge hue and cry against its implementation.
Nature, Scope, and Objectives of GST (Goods and Services Tax)
Impact and Scope of GST bill in India. – rahul lokare blog
It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes. However, petroleum products , alcoholic drinks , and electricity are not taxed under GST and instead are taxed separately by the individual state governments , as per the previous tax system. The tax came into effect from 1 July through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government.
Impact and Scope of GST bill in India.
The implementation of the Goods and Services Tax GST in India was a historical move, as it marked a diverse change in indirect tax system in the country. The amalgamation of a large number of taxes levied at a central and state level into a single tax is expected to have big advantages. One of the most important benefits of the move is the eradication of double taxation or the elimination of the cascading effect of taxation. Indian goods are also expected to be more competitive in international and domestic markets post GST implementation. The history of the Goods and Services Tax GST in India dates back to the year and culminate in with four bills relating to it becoming an Act.
Goods and Services tax or GST is actually an indirect tax which is applied when a customer buys a good or a service. This tax is an individual tax for the whole country. This tax aims to make India a united market. Goods and Services tax will remove different layers of taxation which are purchase tax, VAT, entertainment tax, etc.