Goods and Service Tax (GST) is an indirect tax in India imposed when a customer buys a good. GST is regarded as an indirect tax imposed on the sale, manufacture, buying of goods. The aim of GST is to remove all the indirect taxes imposed on goods by the Indian Central governments and State governments. The GST Bill is passed by both the Houses of Parliament. GST is a single tax that has replaced all the indirect taxes and a single authority is collecting it in our country.
France was the first country to implement GST because the tax avoidance was high, GST was introduced in the year 1954, in France. The tax on GST has been imposed as the indirect tax raised on manufacture, sale, and consumption of goods as well as services in national level. Since then, more than 140 countries have implemented GST along with some countries having dual-GST like Brazil and Canada.
However, India has chosen the Canadian model of dual GST because it has a federal structure where the States and Centre have the powers to impose as well as to collect taxes.
GST (Goods and Service Tax) in India is applicable from 1st July 2017. The GST in India is of three types and they are:
- Central GST(GGST).
- State GST(SGST).
- Integrated GST(IGST).
A person whose annual income will be more than a specified limit it is mandatory to get registered under GST. Besides, there is no fees is charged by the government for doing the registration under GST. In an invoice it is mandatory to include the details like Name, Address, date, GSTIN, invoice number in a serial, rate of GST, taxable value etc. and there is no bound of time limit as well for the issuing of invoices in regards of sale of goods and sale of services.
Besides, all over the world, the concept of GST is same. In some countries, VAT is used as a substitute of GST. However, there are some countries which started with very nominal rates are forced to increase the rates as early as possible after introduction in order to raise more resources.
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