Wednesday, July 25, 2018

Indian GST Goods And Services Tax How it work?


 G.S.T. (Goods and Services Tax-  (0ne Country One Tax) 

Indian GST Goods And Services Tax How it work
Indian GST Goods And Services Tax How it work

Introduction: GST Goods and Services Tax is an indirect tax. The GST Bill was discussed in length in Parliament in order to end the prevailing taxation 5ystem of imposing various indirect taxes and implement a new taxation 5) stem in which most of these taxes will be covered under one umbrella.

Implementation: On 8 September 2016, President of India Mr. Pranab Mukherjee gave assent to this bill making it an Act. It was to be brought in effect from 1 July 2017. A special ceremony took place in which the President, the Prime Minister with his cabinet and many dignitaries and celebrities were present. The GST was declared to be implemented by clapping. '

Previous System of Tax: Previously taxes were charged on every stage namely Excise duty on Manufacture, VAT/CST on state, entry tax on entry of Goods in a local area, etc. This ‘Tax on Tax’ resulted in hiking prices of Goods or Services. These taxes were imposed by the Centre and State differently according to the lists in the Constitution of .lndia.

Features of Goods and Services Tax: The concept of GST Goods and Services Tax is that it would be a single tax system which would be levied on the supply of Goods and Services and this tax will be jointly imposed by the Centre and State. It comprises five laws(i) Central GST law, (ii) State GST law, (iii) Union Territories GST law, (iv) Integrated GST law, and (v) Goods and Services (Compensation to State) law. This tax is not applicable in, Jammu and Kashmir (under article 370).
Key Features :

(i) It is going to remove the cascading of taxes that means a tax on tax
(ii) It has moved the tax system from production to consumption. '
(iii) It has interlinked everything from suppliers to consumers.
Progressive Tax: GST, Goods and Services Tax will have different tax rates for different commodities because a similar tax on all products is not‘possible and not recommended as the relevant consumer group is different for different products. (09'0 . the tax will be levied on Food Grains. Other tax brackets are 5" a, 129 o, 18%,, and 28%), There will be a reduction in prices. It will put better Goods and Services to the populace and as such it will increase the living status of the country. '

Benefits of Goods and Services Tax: The very basic benefit of GST is that it will reduce the possibility of tax manipulation by authorities. There is only one single tax to be; paid in contrast to multiple taxes in the the earlier system. It is much more transparent ' and the consumer will be the most benefitted party. It will also promote national integration.

Widely Accepted of Goods and Services Tax: All the state legislative Assemblies of the country gave their assent to GST. People, Political Leaders, Media,, and other persons have supported it. It may come up with flying colours like ‘Note Bandi’.

Criticism of  Goods and Services Tax: Some political parties, various groups, Trade companies ‘ are critical of the GST. They feared that its proceedings might be lengthy and harassing to the business enterprises. Many political leaders said that instead of reducing the prices of Goods, it will increase them. It was nicknamed as “Gabbar Singh Tax”.

Conclusion: It is claimed that there will be a reduction in prices for Goods. Many complexities may arise in the implementation of this tax. The government
has assured that it will be examined from time to time and it will be revised as per the needs of the situation. It is considered that slowly gradually its benefits Will become practical.

Share This
Previous Post
Next Post

Pellentesque vitae lectus in mauris sollicitudin ornare sit amet eget ligula. Donec pharetra, arcu eu consectetur semper, est nulla sodales risus, vel efficitur orci justo quis tellus. Phasellus sit amet est pharetra