GST- ONE NATION,ONE TAX

    GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes. The main idea behind introducing GST is to improve the economy of the nation. A single undivided Indian market would strengthen the economy and make a nation, powerful as well.
    Now, the taxpayer won’t be confused about the what type of taxes he/she should pay. There will be only one tax, which is GST. The agenda of the government behind introducing GST itself is “One Nation, One Tax”. GST Act is going to ease the stress of taxes from the Indian businesses and manufacturers.

    The Vajpayee government started a discussion on GST by setting up a committee held by Asim Dasgupta (Finance Minister, Government of West Bengal).
    In 2006, budget speech for the financial year, a proposal to implement goods and service tax by April 1, 2010, was mooted.
     In April 2008, the EC submitted a report, titled "A Model and Roadmap for Goods and Services Tax (GST) in India" containing broad recommendations about the structure and design of GST.
    In April 2008, the empowered committee submitted report titled ‘A Model Road Map for Goods and Services Tax (GST) in India’, Which had a recommendation about the structure and design of GST.
    In 2009 the empowered committee released First Discussion Paper on Goods and Services Tax in India. Its objective was generating a debate and obtaining inputs from all stakeholders.
    In March 2011, the constitutional 115th amendment bill was introduced in Loksabha for levying GST on all goods or services except for the specified ones.
    Officers from Central as well as State government were constituted to get GST implemented faster. Which later formed 3 different groups, one group was dedicated to draft legislation required for GST, the second group worked on the process and forms to be followed in GST regime and third group focused on IT infrastructure development needed for smooth functioning of proposed GST.

    The Goods and Services Tax was launched at midnight on 30 June 2017 by the Prime Minister of India, Narendra Modi. The launch was marked by a historic midnight 30 June – 1 July session of both the houses of parliament convened at the Central Hall of the Parliament. Though the session was attended by high-profile guests from the business and the entertainment industry including Ratan Tata, it was boycotted by the opposition due to the predicted problems that it was bound to lead to for the middle and lower class Indians.
    Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%,18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition, a cess of 15% or other rates on top of 28% GST applies to few items like aerated drinks, luxury cars, and tobacco products. GST was initially proposed to replace a slew of indirect taxes with a unified tax and was therefore set to dramatically reshape the country's 2 trillion dollar economy.

    Overview of GST Taxes
    CGST: Central GST which will be levied by Centre
    SGST: State GST which will be levied by State
    IGST: Integrated GST which will be levied by Central Government on inter-State supply and goods and services.
    Taxes subsumed under GST are as follows:
    CGST:  Central GST
    • Central Excise Duty
    • Additional Excise Duties
    • Excise Duty Levied under the medicinal preparations (Excise Duty ) Act, 1955
    • Service Tax
    • Additional customs duty (CVD)
    • Special Additional Duty of Customs
    • Central Surcharge and Cess
    SGST: State GST
    •  VAT / Sales Tax
    •  Entertainment tax (other than the tax levied by local bodies)
    • Central Sales Tax
    • Octroi and Entry tax
    • Purchase Tax
    • Luxury Tax
    • Taxes on Lotteries
    • Betting and gambling
    • State Cesses and Surcharges


    The positive impact of GST:

  1. GST is a single taxation system that will reduce the number of indirect taxes. Earlier, indirect taxes were charged as central excise, VAT, service tax, etc. From now, a single taxation term would cover all of those indirect taxes.
  2. The Prices of products and services would reduce so this system would prove to be beneficial for the people who are fed up of paying huge prices.
  3. This would reduce the burden from the state and the central government. Presently separate taxes are levied on goods and services that you produce. With the introduction of GST, all of these indirect taxes would come under a single roof.
  4. Market development. GST would not be charged at every point of sale like other indirect taxes so this way, a market would be developed.
  5. Corruption-free taxation system. GST would introduce corruption-free taxation system. In the present scenario, the tax is levied at the time of product release from the manufacturing site, and after that retailers also pay it.
  6. Positive impact on the Central and the State level
    According to the latest reports, the introduction of GST would help India to gain $15 billion every year. Let us see how:
  7. Improved exports
  8. More opportunities for employment
  9. Enhanced economy growth
  10. Reduced burden on central and state government.

    11. As every coin has two sides, even The GST has its own set of drawbacks and disadvantages.



    Negative Impact of GST:


  11. According to many economists, the introduction of GST in the country would impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.
  12. GST levied by the government as CGST for central, SGST for state government are nothing but fantasy terms representing older terms Service Tax, CST, and VAT in a new way.
  13. GST is a confusing term where double tax is charged in the name of a single taxation system.
  14. Most of the indirect taxes would now start coming under GST. The Central excise tax is levied at the time of Manufacturing but GST is levied till the selling stage.
  15. Most of the dealers don’t pay central excise tax and cheat the government by simply paying the VAT. But all of those dealers would be forced to pay GST.


    16. There are approx. 140 countries where GST has already been implemented. Some of the popular countries being Australia, Canada, Germany, Japan, and Pakistan, to name a few. Implementation of GST impacts a nation both ways, positively and negatively. Ignoring negative aspects, positive aspects can be taken into consideration, in order to improve the economy of the country.
    As Benjamin Franklin said, " In this world nothing is certain but death and taxes." so we've to grab positive impacts and accept and understand GST to improve and make our country better.








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