Article 1
Article 1
Article 1
INTRODUCTION: -
Goods and service tax (GST) is an indirect tax applicable throughout India
designed to support and enhance the economic growth of the country which
replaces multiple cascading taxes levied by central and state government of
India. More than 150 countries have implemented goods and services tax (GST)
so for. It was introduced as the constitution (one hundred and first amendment)
on 1st July 2017. It is levied when consumer buy a goods or services. Before
GST we had to pay many taxes like excise, service, custom and VAT etc. It
means to remove all the other smaller indirect taxes on consumption and levied
a single, comprehensive tax. A single common goods and services tax was
proposed and given a go ahead in 1999 during a meeting between prime
minister and some economic adviser. Atal Bihari Vajpayee set up a committee
to design GST which was headed by finance minister of west Bengal.
There are three major component of GST – first one is CGST which mean
central goods and services tax, second one is SGST which mean state goods and
services tax and third on is IGST which mean integrated goods and services tax.
If supply of goods and services within the state then it will charge central goods
and services tax (CGST) and state goods and services tax (SGST) and if supply
of goods and services outside home state then it will charge integrated goods
and services tax (IGST). India adopted dual goods and services tax, mean
taxation is governed by both state government and the central government. For
the collection of tax goods and services are divided into five different tax slab-
0%, 5%, 12%, 18% and 28%. For example - GST on soaps is 18%, GST on
detergent is 25% and GST for movie ticket is vary from 18% to 28%. However,
petroleum products, alcoholic drink and electricity are taxed separately by
individual state as per previous tax system they are not come under goods and
services tax. Goods and service tax (GST) is one tax in India is not the correct
statement as GST comes on the replacement of different indirect taxes,
However Custom Duty or Import - Export Duty will remain continued to levy.
CONCLUSION: -
Implementation of goods and services tax is one of the best decisions taken by
BJP government. So that 1st July celebrated as Financial independent day in
India when all the member of parliament attended the function in parliament.
Goods and services tax accepted by 159 countries. Through the structure, GST
might not be a best one but once in place, such a tax structure will make India a
better economy favourable for foreign investment. It is very much accepted and
appreciated regime because it does away with multiple tax rates by centre and
state. And if you are doing any business then you can register under goods and
services tax (GST). Goods and service tax (GST) compensates the loss of
existing VAT or Sales Tax revenue to state government and the central
government. As it not only going to help Indian government but it will also help
you to trac your weekly business as in GST you have to make your business
actively statement each week.