The GST journey began in the year 2000 when a committee was set up to draft law. It took 17 years from then for the Law to evolve. In 2017, the GST Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017, the GST Law came into force.
What is GST and how was it introduced in India?
The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments.
What was the reason to introduce GST in India?
The main motive of GST is to reduce the cascading effect of tax on the cost of goods and services and create a common, cooperative and undivided Indian market to make economy stronger and powerful.
Who introduced first GST?
France was the first country to implement the GST in 1954; since then, an estimated 160 countries have adopted this tax system in some form or another.
What is TDS full name?
Tax Deducted at Source (TDS)
What is the main concept of GST?
GST is an indirect tax in lieu of tax on goods (excise) and tax on service (service tax). The GST is just like State level VAT which is levied as tax on sale of goods.
BASIC CONCEPTS OF GST (PART-1)
|Central Taxes/Levies||State Taxes/Levies|
|Export Duty||Environment Tax|
|Taxes on petroleum products||Property Tax|
|Stamp Duties||Purchase tax on food grains|
What is importance of GST?
GST prevents cascading of taxes by providing a comprehensive input tax credit mechanism across the entire supply chain. Such a seamless availability of Input Tax Credit across goods or services at every stage of supply will enable streamlining of business operations.