GST what is it and why is it needed?
GST, Goods and Service Tax a destination based, indirect tax that will be levied on manufacture, sale and consumption of goods and services. GST includes al the central and state indirect taxes, which includes the additional excise duties, excise duties, service tax, additional customs duty, Value added tax(VAT), Sales tax, Entertainment tax, Central sales tax, entry tax, purchase tax, luxury tax and taxes on lottery, betting and gambling.
The taxes rates are different in different sates, GST will bring uniformity it will reduce the cascading effect of these taxes by giving input tax credit.
GST benefits the common procedures and claims credit for tax paid it will help the industries too and also expected to reduce the cost for the consumers.
“Arun Jaitley the Finance minister estimates GST will help increasing India’s GDP by 2 percent”
Talking about the bill, the UPA government brought the bill in Lok Sabha in 2011 but failed to pass. The NDA government introduced a slightly modified version of the bill last December in Lok Sabha. The bill got clear but the GST is still pending in Rajya Sabha where it needs two-thirds majority by both houses and ratified by 50% of states to be passed.
The main reason of the bill being stuck is that the government does not have a majority in Rajya Sabha, opposition wants the bill to be referred to a select committee and not agreed by the government. The centre and the state have to frame and pass GST laws-Central GST and State GST, which will provide the Β framework of new tax.
GST council will be formed which will decide on the issues including tax rates, exemption list and limits. Sub groups have already prepared blue prints for business, payment and refund process, dual control, rescue-neutral rate and GST laws while the National Institute of Public Finance and Policy and Sub groups have suggested a rate of 27% for both sates and the centre, Finance minister has clearly mentioned that this is too high.
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81 Comments. Leave new
Very informative artical well done
Thank you! π
Informative article!
Thank you! Kriti π
good and simple topic, good explanation.
Thank you! Taruna π
Well written
This is a nice gist on GST.
Thank you! Akul π
Good effort!
Thank you! Chitranshi π
Nice article
Thank you! Rahul π
Thanks for sharing …..looking forward for the bill to pass !! (Y)
Welcome π
Superb article brother. Informative indeed. The beauty of your articles is the organization and the integrity. Maintains the level of interest. Keep up the good work.
Thank you! Ankit π
dude..it z not arun jaitely who hv predicted two percent increment in our gdp but by economist π
Dude, if you read something do read it carefully i never said he “Predicted” he “Estimates” do you know the difference between them? and hope you remember Mr. Arun Jaitely is our Finance minister and it is under his guidance, A tip for you do read my blogs and articles carefully before commenting! Anyway thanks for the activeness showed up! cheers π
It sounds good! N correctly pointed!
Thank you! Sulogna π
Well explained
Thank you! Alisha π
Good one. This will always effect the common man.
Thank you! Abhijeeth da π
Good one again
Thank you! Jagadeesh π
Accurate and succinct!
Thank you! Divya π
Good one brother π
Thank you! Gouri bhai! π
well explained
Thank you! Soham π
Please shed some more light on this topic.Great article.i want to know more.
Sure i will Rk and thank you! π
Good work!
Thank you!
sabash,
jiyo!
Thank you! Gaurav π
Good Job!
Thank you! π
Amazing written and well summarized…
Thank you! Akshita π
good work!!!
Thank you! π
Thanks to this article nw i knw abt gst
Thank you! Gautam! π
wonderful post!!!
Thank you! π
Well explained
Thankyou! Suryakant
Good work!
Yet an another topic .well ilustrated by you . π
GST can probably help the economy. very nice informative article
Informative
quite costly dont you think?
nicenice
Quite an informative article abhinav
Very well written and informative article
Informative article .
great one..
Informative and precise!
Simple and precise yet informative; learned something new.
Interesting! π
Great work
Interesting!
Again very well, but I wanna request u that do u have any Info. about the debates regarding GST ????
Good job..you’ve encapsulated the topic well.
Very informative and nicely explained π
Informative.
Very informative work!
good work π
Needed but will surely burn our pockets!
Well written!
Well summed up π
nice work.
The article is written in a structured manner… You know well to keep a reader’s interest…
Nicely composed…
Good one!
Well compiled
impressive