Goods and Service Tax (GST) is an indirect tax in India imposed when a customer buys a good it has been implanted in India on 1st July 2017. 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 Goods and Service Tax (GST) is a new type of indirect tax that will remove all other types of taxes like sales tax, octroi tax, service tax, central and state sales tax imposed under the current multi-tax system.
Some of the most important facts that one must know about India’s GST Bill are discussed below:
- The GST of India is based on the Canadian model.
- According to the suggestion of the Vijay Kelkar Committee, the GST in India was made.
- Assam was the first state where GST was put into effect.
- Under Article 279 of the Indian constitution, GST has been implemented.
- On 1st July 2017 in India GST was implemented.
- In September 2016, the Indian President GST Council was formed.
- At present GST Council comprises 31 members.
- It is mandatory to pay GST otherwise there is a provision of 5 years of imprisonment.
- The GST was the 122nd constitutional amendment bill that was introduced in the Indian Parliament.
- GST has been put into effect by the 101st Constitutional Amendment Act,2016.
- The GST was first implemented in France.
- The current Finance Minister Arun Jaitley is the Chairman of the GST Council.
- One of the most important reasons behind the implementation of GST is to bring constancy to the tax system of India.
- After GST was put into effect, the tradition of “Tax upon Tax” will be abolished.
- Taxes like Sales tax, service tax, Octroi tax, customs duty, excise duty, VAT, etc. will not last long after the implantation of GST.
- In other words, GST can be said a federal tax.
In keeping the federal structure of India, it is proposed that the GST will be issued both by the Central Government (CGST) and the State Government (SGST). Prime Minister Narendra Modi introduced GST in India on the midnight of 1st July 2017. The development of GST took many negotiations as well as revisions before getting launched in India in its final form in the year 2017.