GST
INTRODUCTION:
The goods and services tax Act was passed in the parliament on 29th March 2017. The Act came into effect on 1st July 2017.GST law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
G- Goods; S-Services-Tax
GST is one indirect tax for the whole nation, which will make India one unified common Market .The GST intends to subsume most indirect taxes under a single taxation regime.GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
OBJECTIVES OF GST:
- One country- one tax.
- Consumption based tax instead of manufacturing.
- Uniform GST registration, payment and input tax credit.
- To eliminate the cascading effect of Indirect taxes on single transaction.
- Subsume all indirect taxes at centre and state level,
- Reduce tax evasion and corruption.
- Increase productivity.
- Increase tax to GDP ratio and revenue surplus.
- Increase compliance.
- Reducing economic distortions.
DIMENSIONS OF GST:
- Change in law and procedures on Implementation of GST.
- New tax rates.
- Reforms in tax credit system.
- Treatment of stock transfers from one state to another.
- Procedure relating to stock transfers.
- Avoiding of double taxation sale service.
- Goods to be classified under HSN.
- Software up-gradation.
- Continuous training of staff.
- Consultation of professionals.
UNION BUDGET [2019-2020]:
- Pan and Aadhaar will become interchangeable.
- ₹5Lakh minimum limit announced for taxpayers.
- GST rate on electric vehicles proposed to be lowered to 5%.
- ₹20 coin coming up.
- Excise duty on fuel hiked by ₹1.
- ₹70,000 crore in recapitalization for public sector banks.
- New national educational policy hopes to transform Indian education into one of the best in the world, with focus on bringing in foreign students.
- ₹50Lakh crore proposed for Railway infrastructure.
- The pension benefit will be extended to 3 crore retail traders under PM Karam Yogi Maan Dhan Scheme. It requires only Aadhaar numbers and bank accounts.
- ₹1 crore worth of loans proposed to MSME s.
CONCLUSION:
Goods and service Tax, with end-to-end tax mechanism, it is likely to bring buoyancy to government revenue. It is expected that the malicious activity of tax theft will go away under Goods and Service Tax regime in order to benefit both government as well as the consumers.