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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

  • Bharat Bandh Today Against GST, Petrol Price Hike, E-way Bill: What to Remain Shut, What’s Not | All You Need to Know

    Bharat Bandh Today Against GST, Petrol Price Hike, E-way Bill: What to Remain Shut, What’s Not | All You Need to Know

    India.com Business Desk | February 25, 2021 7:09 PM IST

    Bharat Bandh Today Against GST, Petrol Price Hike, E-way Bill: While calling for the Bharat Bandh,

    Bharat Bandh Today Against GST, Petrol Price Hike, E-way Bill: What to Remain Shut, What’s Not | All You Ne
    indiacom
    2021-02-25T08:09:10+00:00
    2021-02-25T14:49:29+00:00
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  • Bharat Bandh on 26 February 2021: Over 8 Crore Traders to Protest Against GST, Fuel Price Hike and E-Way Bill

    Bharat Bandh on 26 February 2021: Over 8 Crore Traders to Protest Against GST, Fuel Price Hike and E-Way Bill

    India.com News Desk | February 24, 2021 12:21 PM IST

    Bharat Bandh on 26 February 2021: Announcing the bandh last week, CAIT said dharnas (protests) will

    Bharat Bandh on 26 February 2021: Over 8 Crore Traders to Protest Against GST, Fuel Price Hike and E-Way Bill
    indiacom
    2021-02-24T01:21:32+00:00
    2021-02-24T01:21:32+00:00
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  • GST Revenue Collection for January Almost Touched Rs 1.20 lakh Crore, says Finance Ministry

    GST Revenue Collection for January Almost Touched Rs 1.20 lakh Crore, says Finance Ministry

    India.com News Desk | January 31, 2021 9:43 PM IST

    The tax collection is higher than the December 2020 record set in the last round, which witnessed

    GST Revenue Collection for January Almost Touched Rs 1.20 lakh Crore, says Finance Ministry
    indiacom
    2021-01-31T10:43:22+00:00
    2021-01-31T11:10:49+00:00
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  • GST Officials Detect Over Rs 830 Crore Tax Evasion by Pan-masala Manufacturing Unit in Delhi

    GST Officials Detect Over Rs 830 Crore Tax Evasion by Pan-masala Manufacturing Unit in Delhi

    India.com News Desk | January 3, 2021 6:05 PM IST

    On the basis of evidence gathered, stocks seized and confessional statements recorded the total

    GST Officials Detect Over Rs 830 Crore Tax Evasion by Pan-masala Manufacturing Unit in Delhi
    indiacom
    2021-01-03T07:05:10+00:00
    2021-01-03T07:14:48+00:00
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  • GST Collections At All-Time High of Over Rs 1.15 Lakh Crore in December 2020

    GST Collections At All-Time High of Over Rs 1.15 Lakh Crore in December 2020

    PTI | January 1, 2021 2:21 PM IST

    The gross GST revenue collected in the month of December 2020 is Rs 1,15,174 crore and is the

    GST Collections At All-Time High of Over Rs 1.15 Lakh Crore in December 2020
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    2021-01-01T03:21:03+00:00
    2021-01-01T03:21:03+00:00
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  • GST Revenues Cross Trillion Mark For 2nd Straight Month at Over Rs 1.04 Lakh Crore in November

    GST Revenues Cross Trillion Mark For 2nd Straight Month at Over Rs 1.04 Lakh Crore in November

    PTI | December 1, 2020 5:25 PM IST

    Collections of tax on the sale of goods and rendering of services came in at Rs 1,04,963 crore in

    GST Revenues Cross Trillion Mark For 2nd Straight Month at Over Rs 1.04 Lakh Crore in November
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    2020-12-01T06:25:20+00:00
    2020-12-01T06:25:20+00:00
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  • GST Collections For October Exceed Rs 1 Lakh For First Time Since February

    GST Collections For October Exceed Rs 1 Lakh For First Time Since February

    India.com Business Desk | November 1, 2020 11:45 AM IST

    The revenue collected this month was 10 per cent higher than Rs 95,379 crore collected in the same

    GST Collections For October Exceed Rs 1 Lakh For First Time Since February
    indiacom
    2020-11-01T00:45:18+00:00
    2020-11-01T00:45:18+00:00
    GST
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  • GST Collections in Oct May Cross Rs 1 Lakh Crore Mark For First Time in FY21

    GST Collections in Oct May Cross Rs 1 Lakh Crore Mark For First Time in FY21

    IANS | October 26, 2020 11:00 PM IST

    With few more days left for the month to get over, the expectation is that October collections

    GST Collections in Oct May Cross Rs 1 Lakh Crore Mark For First Time in FY21
    indiacom
    2020-10-26T12:00:41+00:00
    2020-10-26T12:00:41+00:00
    GST
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  • ITR: Income Tax Return Filing Deadline For FY 2019-20 Extended To Dec 31, Check Details

    ITR: Income Tax Return Filing Deadline For FY 2019-20 Extended To Dec 31, Check Details

    India.com Business Desk | October 24, 2020 4:08 PM IST

    The CBDT said the deadlines have been extended in order to "provide more time to taxpayers for

    ITR: Income Tax Return Filing Deadline For FY 2019-20 Extended To Dec 31, Check Details
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    2020-10-24T05:08:43+00:00
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  • Centre to Borrow Rs 1.1 Lakh Crore to Meet GST Compensation Cess Shortfall

    Centre to Borrow Rs 1.1 Lakh Crore to Meet GST Compensation Cess Shortfall

    IANS | October 15, 2020 8:25 PM IST

    The authorisation for increased OMBs of 0.5 per cent of GSDP has been issued by the Ministry of

    Centre to Borrow Rs 1.1 Lakh Crore to Meet GST Compensation Cess Shortfall
    indiacom
    2020-10-15T09:25:14+00:00
    2020-10-15T09:25:14+00:00
    GST
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  • Centre Allows 20 States to Borrow Additional Rs 68,825 cr to Meet Revenue Shortfall Due to Pandemic

    Centre Allows 20 States to Borrow Additional Rs 68,825 cr to Meet Revenue Shortfall Due to Pandemic

    India.com Business Desk | October 13, 2020 10:38 PM IST

    Despite 12 states agreeing the Union government's solution to meet their financial losses, there

    Centre Allows 20 States to Borrow Additional Rs 68,825 cr to Meet Revenue Shortfall Due to Pandemic
    indiacom
    2020-10-13T11:38:24+00:00
    2020-10-13T11:38:24+00:00
    GST
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  • 'No Consensus on GST Compensation,' Says Nirmala Sitharaman After 9 States Reject Centre's Solution

    'No Consensus on GST Compensation,' Says Nirmala Sitharaman After 9 States Reject Centre's Solution

    India.com News Desk | October 12, 2020 10:43 PM IST

    The finance minister affirmed that India cannot afford increased borrowed costs at a time when the

    'No Consensus on GST Compensation,' Says Nirmala Sitharaman After 9 States Reject Centre's Solution
    indiacom
    2020-10-12T11:43:42+00:00
    2020-10-12T12:43:35+00:00
    GST
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  • GST Compensation Cess Worth Rs 20,000 to be Disbursed to All States: Nirmala Sitharaman

    GST Compensation Cess Worth Rs 20,000 to be Disbursed to All States: Nirmala Sitharaman

    India.com Business Desk | October 5, 2020 8:57 PM IST

    The GST compensation, due to any state economy that progresses slower than 14 per cent, was

    GST Compensation Cess Worth Rs 20,000 to be Disbursed to All States: Nirmala Sitharaman
    indiacom
    2020-10-05T09:57:04+00:00
    2020-10-05T21:45:36+00:00
    GST
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  • Businesses Not Ready With GST E-invoicing Get 30-day Grace Period

    Businesses Not Ready With GST E-invoicing Get 30-day Grace Period

    IANS | October 1, 2020 8:57 AM IST

    In a notification on Wednesday evening, CBIC noted that even after more than nine months of the

    Businesses Not Ready With GST E-invoicing Get 30-day Grace Period
    indiacom
    2020-09-30T21:57:44+00:00
    2020-09-30T21:57:44+00:00
    GST
    India.com
  • Cess Collected by Centre Not Getting Transferred to Dedicated Funds: CAG

    Cess Collected by Centre Not Getting Transferred to Dedicated Funds: CAG

    IANS | September 25, 2020 7:52 PM IST

    There was short transfer of Rs 1,64,322 crore to various Reserve Funds/Boards from 35 cesses that

    Cess Collected by Centre Not Getting Transferred to Dedicated Funds: CAG
    indiacom
    2020-09-25T08:52:31+00:00
    2020-09-25T08:52:31+00:00
    GST
    India.com
  • 13 States Submit Borrowing Option to Centre to Fund GST Shortfall

    13 States Submit Borrowing Option to Centre to Fund GST Shortfall

    IANS | September 13, 2020 10:35 PM IST

    Out of the 13, 12 states have opted for the first option, under which the Union government has

    13 States Submit Borrowing Option to Centre to Fund GST Shortfall
    indiacom
    2020-09-13T11:35:39+00:00
    2020-09-13T11:36:10+00:00
    GST
    India.com
  • Will Take up GST Cut Demand With FM Sitharaman And PM Modi, Says Javadekar

    Will Take up GST Cut Demand With FM Sitharaman And PM Modi, Says Javadekar

    IANS | September 4, 2020 7:50 PM IST

    Speaking at the virtual Annual Convention of Society of Indian Automobile Manufacturers (SIAM), the

    Will Take up GST Cut Demand With FM Sitharaman And PM Modi, Says Javadekar
    indiacom
    2020-09-04T08:50:59+00:00
    2020-09-04T08:50:59+00:00
    GST
    India.com
  • ‘Betrayal of Trust’: Mamata Banerjee, Other Chief Ministers Write to PM Modi Over GST Compensation

    ‘Betrayal of Trust’: Mamata Banerjee, Other Chief Ministers Write to PM Modi Over GST Compensation

    India.com News Desk | September 2, 2020 4:59 PM IST

    Notably, Mamata Banerjee and other five chief ministers have written to PM Modi over the GST

    ‘Betrayal of Trust’: Mamata Banerjee, Other Chief Ministers Write to PM Modi Over GST Compensation
    indiacom
    2020-09-02T05:59:17+00:00
    2020-09-02T05:59:17+00:00
    GST
    India.com
  • GST Collection Drops For Second Month in August to Rs 86,449 Crore

    GST Collection Drops For Second Month in August to Rs 86,449 Crore

    PTI | September 1, 2020 9:20 PM IST

    On year-on-year basis, the August collection was 12 per cent lower compared to Rs 98,202 crore

    GST Collection Drops For Second Month in August to Rs 86,449 Crore
    indiacom
    2020-09-01T10:20:52+00:00
    2020-09-01T10:20:52+00:00
    GST
    India.com
  • Centre Writes to States Suggesting Options of Borrowing Money to Make up For GST Shortfall

    Centre Writes to States Suggesting Options of Borrowing Money to Make up For GST Shortfall

    PTI | August 29, 2020 7:46 PM IST

    The Centre has estimated that of this Rs 2.35 lakh crore, Rs 97,000 crore compensation requirement

    Centre Writes to States Suggesting Options of Borrowing Money to Make up For GST Shortfall
    indiacom
    2020-08-29T08:46:58+00:00
    2020-08-29T08:46:58+00:00
    GST
    India.com
Next
indiacom
2021-02-25T18:30:00+00:00
2021-02-25T18:30:00+00:00
GST
GST
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