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Home > Topics > GST

GST

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GST

Taxes were levied at each stage separately at various rates under the Indian Taxation System. But the new GST (Goods and Services Tax) has been established as the unified indirect tax on goods and services. The GST was launched on midnight 1 July, 2017 at a special event in the presence of President Pranab Mukherjee and Prime Minister Narendra Modi. From July 1, 2017, the GST being levied in India is in five categories, at the rates of zero percent, 5%, 12%, 18% and 28% per annum. Latest update by the Finance Ministry: Commodities of daily use like washing powder, aftershave cream, detergent, chocolate are likely to get cheaper as the GST Council has decided to keep only 50 items in the top tax bracket of 28 per cent. The decision was taken at a ‘close-door’ meeting of GST Council in Guwahati on Friday. Gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. Gifts of more than Rs 50,000/- made without consideration are subject to GST,when made in course or furtherance of business. Watch Narendra Modi's live speech at the GST launch event in this video below: 

The GST will help consumers, as they will pay an all round tax on the products they buy instead of the VAT and other taxes that are a part of the maximum retail price. GST is a destination-based tax (consumption tax) rather than origin-based tax. It is a single tax with a full set-off for taxes paid earlier in the value chain. The Service Tax, VAT, Octroi, various state taxes, and other taxes have been done away with and now there is only one tax for the entire nation - the GST. The objective of GST is to subsume various indirect taxes levied at different levels, paving the way for a transparent indirect tax regime in India. 

History of the GST Bill

In the year 2000, an Empowered Committee (EC) was appointed by the Prime Minister Atal Bihari Vajpayee government, which was headed by Asim Gupta, the then Minister of Finance and Excise of West Bengal state. In 2004, the recommendations were made by Vijay Kelkar, advisor to the Finance Ministry, to replace the existing tax regime by GST. On February 28, 2006, the then Union Finance Minister P Chidambaram disclosed in his Union Budget speech the implementation of GST by April 1, 2010. On February 28, 2007, P Chidambaram proclaimed that the EC will prepare a GST roadmap. On April 30, 2008, EC submitted a report to the government, titled 'A Model and Roadmap Goods and Services Tax (GST) in India'. EC submitted a discussion paper on GST in public domain on November 10, 2009.

On February 2010, a project for the computerisation of commercial taxes was launched by the government and later, Pranab Mukherjee rescheduled GST to April 1, 2011. On March 22, 2011, the Lok Sabha witnessed the introduction of Constitution Amendment Bill (115th) to GST and the bill got referred to Standing Committee on Finance. The decision was made by Finance minister and state ministers to resolve all issues by December 31, 2012. The Finance minister made provisions for compensation to states on February 2016. Later, a report was submitted by the standing committee to Parliament suggesting amendments. The bill lapsed due to the dissolution of the 15th Lok Sabha. On December 18, 2014, the Cabinet approved the Constitution Amendment Bill (122nd) to GST. The Lok Sabha passed the Amendment Bill (122nd) on May 6, 2015.

The Amendment Bill was presented in Rajya Sabha on May 12, 2015. The Bill forwarded to joint committee of Rajya Sabha and Lok Sabha on May 14, 2015. The Constitution Amendment Bill was passed in Rajya Sabha by two-thirds majority on Aug 3, 2016. At the Central level, the taxes subsumed under GST include; Central Excise Duty, Additional Excise Duty, Service Tax, Additional Customs Duty commonly known as Countervailing Duty and Special Additional Duty of Customs. At the State level, the taxes subsumed under GST include; Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax and Taxes on lottery, betting and gambling. Central GST and State GST would be levied on every transaction of supply of goods and services except on goods which are outside the purview of GST, exempted goods and services and the transactions which are below the prescribed threshold limits.

Both CGST and SGST would be levied on the same price contrasting State VAT which is levied on the value of the goods including Central Excise. Initially for two years, an Additional Tax not exceeding 1 percent on inter-State supply of goods would be levied by the Center and assigned to the originating State. The tax should be levied only when the supply is made for a consideration.

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GST News

  • Online Gaming, Casino, Horse Racing May Soon Attract 28% GST

    Online Gaming, Casino, Horse Racing May Soon Attract 28% GST

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    Now, the recommendation of GOM is subject to the final approval of the GST council, which will

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  • CBIC Extends Date for Filing GSTR 3B Due to Technical Glitch

    CBIC Extends Date for Filing GSTR 3B Due to Technical Glitch

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    "Considering the difficulties faced by taxpayers in filing their GSTR-3B for the month of April

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  • GST Filing Deadline For April 2022 Likely to be Extended Due to Technical Glitches on Portal

    GST Filing Deadline For April 2022 Likely to be Extended Due to Technical Glitches on Portal

    India.com Business Desk | May 17, 2022 6:30 PM IST

    GST Filing Deadline Latest Update: The Central Board of Indirect Taxes & Customs said the Central

    GST Filing Deadline For April 2022 Likely to be Extended Due to Technical Glitches on Portal
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  • Timing Of RBI Rate Hike Was Surprising: Sitharaman

    Timing Of RBI Rate Hike Was Surprising: Sitharaman

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    "It is the timing which came as a surprise to many, but the act people thought should have been

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  • GST Revenues Touch All-time High at Rs 1.68 lakh cr in April

    GST Revenues Touch All-time High at Rs 1.68 lakh cr in April

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    April's gross GST collection is Rs 25,000 crore more than the previous highest collection of Rs

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  • After Reports Of Likely GST Hike On 143 Items, Experts Urge Government To Maintain Status Quo

    After Reports Of Likely GST Hike On 143 Items, Experts Urge Government To Maintain Status Quo

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    The PHD Chamber of Commerce and Industry urged the government to not change the GST rates as the

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  • GST Council Seeks States View On Hiking Rates Of 143 Items. Read Details HERE

    GST Council Seeks States View On Hiking Rates Of 143 Items. Read Details HERE

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    At present, GST has four slabs of 5, 12, 18 and 28 per cent. Besides, gold and gold jewellery

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  • GST Council Likely To Do Away With 5% Slab; Move Items To 3%, 8% Rates: Report

    GST Council Likely To Do Away With 5% Slab; Move Items To 3%, 8% Rates: Report

    India.com News Desk | April 17, 2022 3:34 PM IST

    Some goods of mass consumption in the 5 per cent slabs would likely be moved to the 3 per cent

    GST Council Likely To Do Away With 5% Slab; Move Items To 3%, 8% Rates: Report
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  • Gross Tax Collections Rs 5 Lakh Crore More Than Budget Estimates, Tax-To-GDP Ratio Highest Since 1999

    Gross Tax Collections Rs 5 Lakh Crore More Than Budget Estimates, Tax-To-GDP Ratio Highest Since 1999

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    Tax Collection in India: Gross tax collection of Rs 27.07 lakh crore from April 2021 to March 2022

    Gross Tax Collections Rs 5 Lakh Crore More Than Budget Estimates, Tax-To-GDP Ratio Highest Since 1999
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  • Tax On Crypto: Government To Soon Finalise If Cryptos Are Goods Or Services To Bring Them Under GST

    Tax On Crypto: Government To Soon Finalise If Cryptos Are Goods Or Services To Bring Them Under GST

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    Crypto News: Currently, 18 per cent GST is levied on the entire value of transactions of crypto by

    Tax On Crypto: Government To Soon Finalise If Cryptos Are Goods Or Services To Bring Them Under GST
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  • CBIC Reminds Taxpayers To File GST Returns For February By Sunday

    CBIC Reminds Taxpayers To File GST Returns For February By Sunday

    India.com News Desk | March 19, 2022 9:06 PM IST

    As part of a social media drive to improve compliance, CBIC also reminded the GST payers other than

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  • 'Oregano Toh Free Rahega Na?' Netizens After AAAR Rules 18% GST on Pizza Toppings

    'Oregano Toh Free Rahega Na?' Netizens After AAAR Rules 18% GST on Pizza Toppings

    India.com News Desk | March 15, 2022 10:55 PM IST

    Tax rates on pizzas differ based on their preparation and selling process. If a pizza is eaten

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  • GST Council Likely to Increase Lowest Tax Slab to 8% in Next Meeting Later This Month: Report

    GST Council Likely to Increase Lowest Tax Slab to 8% in Next Meeting Later This Month: Report

    India.com Business Desk | March 11, 2022 5:03 PM IST

    The report claimed that a panel of state finance ministers is likely to submit its report by this

    GST Council Likely to Increase Lowest Tax Slab to 8% in Next Meeting Later This Month: Report
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  • GST: GST Council May Soon Raise Lowest Tax Slab From 5 Per Cent To 8 Per Cent

    GST: GST Council May Soon Raise Lowest Tax Slab From 5 Per Cent To 8 Per Cent

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    GST Council: GoM is likely to propose raising the 5 per cent slab to 8 per cent, which may yield an

    GST: GST Council May Soon Raise Lowest Tax Slab From 5 Per Cent To 8 Per Cent
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  • GST Collections In February Top Rs 1,33,000 Crore, 18 Per Cent Higher Than Feb 2021

    GST Collections In February Top Rs 1,33,000 Crore, 18 Per Cent Higher Than Feb 2021

    India.com Business Desk | March 1, 2022 2:47 PM IST

    GST Collections: The gross GST revenue collected in February 2022 is Rs 1,33,026 crore of which

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  • UP Couple Attempts Suicide On Facebook Live Over Financial Loss, Wife Dead

    UP Couple Attempts Suicide On Facebook Live Over Financial Loss, Wife Dead

    India.com News Desk | February 9, 2022 4:05 PM IST

    A trader from Uttar Pradesh went live on Facebook, along with his wife, and attempted suicide over

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  • Budget 2022: Will Mobile Phones, TVs Get Cheaper This Year? Here's What Experts Expect

    Budget 2022: Will Mobile Phones, TVs Get Cheaper This Year? Here's What Experts Expect

    India.com Business Desk | January 28, 2022 10:29 PM IST

    Budget 2022: According to reports, the Central government is planning to revise customs duties on

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  • Budget 2022: FM Minister Urged by Jewellers to Reduce GST; Must Watch

    Budget 2022: FM Minister Urged by Jewellers to Reduce GST; Must Watch

    Video Desk | January 28, 2022 6:15 PM IST

    Hospitality and Jewellers have asked Finance Minister to lessen burden of Tax on there respective

    Budget 2022: FM Minister Urged by Jewellers to Reduce GST; Must Watch
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  • National Education Bank, GST Relief: Here Is What Education Sector Expects From Budget 2022

    National Education Bank, GST Relief: Here Is What Education Sector Expects From Budget 2022

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    Budget 2022 News: Experts want the government to consider establishing a 'National Education Bank,'

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    Capital Expenditure, Reduction in GST: 10 Things India’s Middle Class Expects From Budget 2022

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