Learn more about GST..
- The General Service Taxation (GST) scheme known as the Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by central and state governments.
- The GST is governed by GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services will be taxed in categories, i.e., 0%, 5%, 12%, 18%, 28%
- The Goods and Services Tax (GST), the biggest tax reform in 70 years of independence, was launched at midnight of 30 June 2017 by PM Narendra Modi.
- Congress boycotted the GST launch altogether. It was joined by TMC, Left & DMK. GST, which replaces a slew of indirect taxes with a unified tax, is set to dramatically reshape the 2 trillion dollar economy of our country.
- The following taxes will be bound together by the GST:
- Central Excise Duty
- Commercial Tax
- Value Added Tax (VAT)
- Food Tax
- Central Sales Tax (CST)
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Luxury Tax
- Advertisement tax
- Service Tax
- Customs Duty
- GST will be levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services. India will adopt a dual GST model, meaning that taxation is administered by both the Union and State Governments.
Effects of GST
It has proposed to insulate the revenues of the States from the impact of GST, with the expectation that in due course, GST will be levied on
petroleum and petroleum products. The central government has assured states of compensation for any revenue loss incurred by them from the date of GST for
a period of five years.
CLICK HERE to read more about GST on its official website.