Scribd Logo
Upload

Welcome to Scribd!

  • Daily Facts IAS Exam: Goods and Services Tax

    Uploaded by

    Vetrii IAS Academy
    27 views3 pages
    Goods and Services Tax is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. India took giant step in structural indirect taxation reform and paved way for the concept of one nation, one tax.

    Original Title

    Daily Facts - IAS 07-Sep-2016

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Goods and Services Tax is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. India took giant step in structural indirect taxation reform and paved way for the concept of one nation, one tax.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    27 views3 pages

    Daily Facts IAS Exam: Goods and Services Tax

    Uploaded by

    Vetrii IAS Academy
    Goods and Services Tax is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. India took giant step in structural indirect taxation reform and paved way for the concept of one nation, one tax.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    VETRII IAS ACADEMY

    OldNo.52,NewNo.1,9thStreet,
    FBlock,1stAvenueMainRoad,
    NearIsthasiddhiVinayakarTemple,
    AnnaNagarEast,Chennai600102.
    Phone:+91(44)26265326
    Mobile:+919600124042,9840097666
    http://www.vetriias.com

    Daily Facts
    IAS Exam
    Dated:07Sep2016

    GOODS AND SERVICES TAX


    GoodsandServicesTaxisacomprehensive
    indirecttaxonmanufacture,saleand
    consumptionofgoodsandservicesthroughout
    India,toreplacetaxesleviedbythecentraland
    stategovernments.Indiatookgiantstepin
    structuralindirecttaxationreformandpavedway
    fortheconceptofonenation,onetax.

    GOOD AND SERVICES TAX

    TheConstitution(122ndAmendment)Bill,2014wasintroducedintheLokSabhabyFinanceMinisterArunJaitleyon19
    December2014,andpassedbytheHouseon6May2015.
    FeaturesofGST
    Singletaxonsupplyofgoodsandservices,rightfromthemanufacturertotheconsumer
    Itisadestinationbasedtaxunlikethepresenttaxationschemewhichisoriginbased
    Itisavaluebasedtaxascreditsofinputtaxespaidateachstagewillbeavailableinthesubsequentstages
    ThefinalconsumerwillbearonlytheGSTchargedbythelastdealerinthesupplychain
    FollowingtaxesarebeingincludedunderGSTatthecentrallevel
    CentralExciseDuty
    AdditionalExciseDuty
    ServiceTax
    CountervailingDuty
    SpecialAdditionalDutyofCustoms
    FollowingtaxesarebeingincludedunderGSTatthestatelevel
    CentralExciseDuty
    StateVAT/SalesTax
    EntertainmentTax
    CentralSalesTax
    OctroiandEntryTax
    PurchaseTax
    LuxuryTax
    Taxesonlottery,bettingandgambling
    GSTwithstateratification
    TheActwaspassedinaccordancewiththeprovisionsofArticle368oftheConstitution,andhasbeenratifiedbymorethan
    halfoftheStateLegislatures,asrequiredunderClause(2)ofthesaidarticle.On12August2016,Assambecamethefirst
    statetoratifythebill,tillnow(06092016)18statesareapprovedGSTbill.

    GOOD AND SERVICES TAX

    Featuresof122ndGSTBILL
    ConferredsimultaneouspoweruponParliamentandStateLegislaturetomakelawsgoverningGST
    SubsumingCentralandStatetaxesunderGSTasdescribedabove
    LevyofGSToninterstatetransactionsofgoodsandservices
    GSTonallgoodsandservicesexceptalcoholicliquor.Petroleumandpetroleumproductsshallbesubjectedtothelevyof
    GSTonalaterdateasdecidedbytheGSTCouncil.
    GSTCouncil,aconstitutionalbody,createdwith2/3rdrepresentationfromstatesand1/3rdfromcentretoexamineissues
    relatedtoGSTandmakerecommendationonrates,taxes,cesses,surcharges,exemptionlist,disputeresolutionetc.All
    decisionsinGSTCounciltobetakenby3/4thmembers.ItwillfunctionunderthechairmanshipofUnionFinance
    Minister
    Compensationtostatesfortheentireamountofrevenuelossesfor5years
    MERITS:
    IndustryANDBusiness
    Easycomplianceasonetaxtobepaid
    CreationofonemarketwhichwillfacilitateEaseofDoingBusinessinIndia
    Removalofcascadingtaxeswhichwilllowerprice,therebyboostingdemand.
    Improvecompetitivenessasthetransactioncostfordoingbusinesswouldreduce.
    AlltheaboveadvantagesareexpectedtoprovideaboosttotheambitiousMakeinIndiaprogrammeofthegovernment
    Consumers
    Nocascadingburdenoftaxeswhichwouldmoderateinflation
    Moretransparencyintaxationregimeandeasiertounderstandforthecustomers
    Government
    Thenewtaxationregimewillbeeasiertoadministerforthegovernment
    Bettercontrolonleakagesduetolesserevasion
    Higherrevenueefficiency

    References:
    https://en.wikipedia.org/wiki/Goods_and_Services_Tax_Bill
    http://www.cbec.gov.in/htdocscbec/gst

    You might also like