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Goods and Service Tax Explained

10 Points Explaining The GST Bill.

 

 

Goods and Service Tax Explained

Goods and Service Tax Explained

THE GOODS AND SERVICE TAX

The Goods and Services Tax is one of the important items on the finance agenda of the NDA Government. Present Finance Minister  Arun Jaitley has stated that it can increase the GDP of the economy by 1 or 2 percent. As the Lok Sabha is to take up the upcoming GST Bill, here is your view on the debate.

1     If it is passed Officially, in the Indian Constitution (it would be the One Hundred and Twenty-Second Amendment) Bill 2014.
2     It was introduced in the Lok Sabha as on December 19, 2014 by the present Finance Minister Of India Arun Jaitley.
3     The Bill plans to amend the Constitution so as to introduce A Goods and Services tax (GST) which will make one various Central indirect taxes, including the Central Excise Duty,, Service Tax, etc. It also absorbs State value added tax (VAT), luxury tax, etc.
4     The Bill will insert a new Article in the Indian Constitution making laws on the taxation of goods and services a concurrent power between the Centre and the States in India.
5     The Bill attempts to change the limitations on the States for taxing the sale and purchase of goods to the supply of goods or services.
6     The Bill attempts  to lay the foundation of a GST Council tasked with optimising tax collection for goods and services by the State and Centre in India. The Council will be made up of the Union Finance Minister (as Chairman), the Union Minister of State in charge of revenue or for Finance, and the Minister in charge of Finance or for Taxation or any other, approved by each of The State government.
7     The GST Council will be a body that makes decision on which taxes levied by the Centre, States and local bodies will go into the GST; which goods and services are to be implemented into the  GST; and the basis and the rates at which GST will be levied for.
8     Under the Bill, alcoholic liquor for human consumption is exempted from GST. Also, it will be up to the GST Council to decide when GST would be charged on various types of fuel, including crude oil and petrol.
9     The Centre will add an extra one per cent tax on the supply of goods in the course of inter-State trade, which will be given to the States for two years or till the time approved by the  GST Council.
10     Parliament can decide on atoningStates for up to a five-year period if States incur losses by application of GST.

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