Sunday, 7 August 2016

GST Part I

ALL ABOUT GST  (Part I)

GST stands for goods and service tax. It is proposed to be comprehensive indirect tax levy on manufacture, sale and consumption of goods and services at the national level. It will replace all indirect taxes levied on goods and services by the Indian central and state governments.

The introduction of  GST would be a significant step in the reform of indirect taxation in India. Amalgamating several central and state taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of tax would lead to easier administration and enforcement.
From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%.

Its Background :

An announcement was made by the former Union finance Minister, Chidambram during the central budget of 2006-07 , for the GST to be implemented from April 1, 2010 an Empowered committee  was to prepare the road map for the introduction of the GST.
Before this, in 2000, the Vajpayee govt set up the empowered committee of state Finance  ministers with the aim of facilitating a switch from the existing national-level central excise duty and state level sates tax model to designing the GST model and overseeing the IT- back end preparedness for its roll out.
LATE Dr. APJ Abdul Kalam had pointed out that although the indirect tax poilicy in India has been steadily progressing towards in the direction of the VAT principal since 1986, the existing system still suffered from many problems and suggested a comprehensive GST based on VAT principal
 GST system is targeted to be simple, transparent and efficient system of indirect taxation and has been accepted by over 130 countries around the world.

to be continued in the next part...
(Article prepared by Shruti)
Happy Reading.

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Himanshu Shrivastava
A Certified Digital Marketer (By Google). and well Experianced Blogger Since 2010 .
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