Essay on Goods and Services Tax (GST) by Aman Agiwal, GLC.
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The genesis of the introduction of GST in the country was laid down in the historic Budget Speech of 28th February 2006, wherein the then Finance Minister laid down 1st April, 2010 as the date for the introduction of GST in the country. Thereafter, there has been a constant endeavor for the introduction of the GST in the country whose culmination has been the introduction of the Constitution.
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GST is a huge reform for indirect taxation in India, the likes of which the country has not seen post Independence. GST will simplify indirect taxation, reduce complexities, and remove the cascading effect. Experts believe that it will have a huge impact on businesses both big and small, and change the way the economy functions.
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The Goods and Service Tax (GST) is a Value Added Tax (VAT) to be implemented in India from July, 2017. It is a comprehensive tax mechanism where in all major indirect taxes are clubbed into one.
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GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer The Input Tax credit paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. It is the end consumer who will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at.
GST is a single tax on the supply of goods and services. It is a destination based tax. GST will subsume Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc. Importance of GST in Indian Economy: GST Regime: GST is one of the biggest indirect tax reforms in the country. GST is expected to bring together state economies and improve.
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In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) subsuming central, state taxes, and interstate taxation based on VAT principle. A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.
Related-Advantages and Disadvantages of GSTProblems in Implementation of GST. Vat or sales tax is levied and collected by the state government. Different state government charge different rate of taxes on different kind of goods traded within their respective territorial limits under the extreme power provided to the state under state list of the Constitution.
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