AN EYE THROUGH GST

                                                                       

AN EYE THROUGH GST 

GST, 'Goods and service tax' has replaced multi-stage taxation system. It is an indirect tax applicable throughout India. In India, the goods and service tax was launched on 30th June 2017. It was first proposed in 2000, and it took 17 years of forming of legislation. Goods and service tax was introduced as the constitution act 2017. GST is governed by GST council and the chairman in the finance ministries of India. GST as the most important tax reform undertaken by the government in the last two decades. GST was the new indirect infinitive from central government. GST was first introduced by UPA government in 2011 and when they introduced they faced the opposition of state government.

               ONE NATION, ONE TAX , ONE MARKET 

                                                                 Former, in India, the tax is classified into two, direct tax and indirect tax. A direct tax such as income tax, corporate tax, minimum alternate tax [MAT] etc... An indirect tax such as sales tax, service tax, exercise duty etc... The indirect tax which GST replaced are excise duty(tax on manufacturing which is paid by the manufacturer), service tax (tax on services), state VAT [value added tax] (it is charge on sale and consumption of goods within state), central states tax (tax on interstate sale and consumption of goods) etc... and when GST was introduced all the indirect tax substituted by GST. GST is also offered as the value-added tax in some countries. It is a consumption based tax. Unlike the former taxation system(origin-based taxation system), which means that taxes levied as the point whore the goods are originated, to GST is charged at the place the consumption had happen. This was the major reason why most of the manufacturing oriented sTate objected GST when it was introduced. It does not differentiate between goods and services. GST works on the principle of charging for tax on the value addition at each businesses stage. Goods and service tax is with the lower rates for some iten=ms and also a higher rate for luxury goods