Goods and Services Tax (GST) has become the talk of the country nowadays as it’s being expected that there would be a big impact on the monetary condition. UPA Government first mooted this GST in 2006 with a hope to develop a uniform taxation system. This would reduce the burden of cascading taxes helping Indian citizens to make an easy purchase.
But presently there arises a big confusion as this is another big step by BJP Government after demonetization. People are confused since they are not well familiar with the system and are worried that the costs of goods would become higher.
A Brief Look on the Taxes We Pay At Present
The taxes we paid before the implementation of GST are like:
- Entertainment Tax
- Value Added Tax (VAT)
- Excise Duties
- Import Duties
- Luxury Tax
- Central Sales Tax
- Service Tax
Apart from these, there manifold other duties, which were implemented depending on types of goods and businesses. GST comes up to amalgamate all these indirect taxes making business easier and thus people can explore the real benefits.
Now, here is a brief look at Modi’s speech in Lok Sabha on GST launch
Basic Facts and Figures on GST
Here are mentioned some basic facts and figures on GST:
- The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 was acknowledged in Lok Sabha n 5th May 2015.
- Finally, the bill was recognized in Rajya Sabha on 3rd August 2016.
Looking into the history of GST France was the first country implementing GST at Global in 1954. And presently about 140 countries are following this centralized taxation system. Now, it’s time to see how the Government overcome the challenges and only time can give the results.
The centralized taxation system gives the concurrent power to Central and State Government implementing suitable laws on goods and service taxation. The tax collected would get distributed between the center and states provided by the Parliament law.