Essay on Good Services Tax (GST)- 900 word in English Launguage.
An indirect tax is levied on goods and services tax (GST) when a consumer buys good or service, India's current tax scenario is full of various indirect taxes, GST will bring a single PAN India Taxes by bringing all such taxes under a single pan To release with Purpose of the bill to eliminate the effects of taxes on production and distribution prices on goods and services
Taxes have a large impact due to the implementation of separate tariffs by the state and central governments. This tax structure increases the tax burden on Indian products, which in turn affects their prices, and as a result, sales in the international market. Therefore, the new tax regime will therefore help promote the export, in the changed scenario, the central and states will be credited to GST by doing the following.
Central Tax Replacement by GST Bill Central Excite Duty. Additional duty on excise duty and customs, special additional customs duty (SAD), service tax and cess and surchus on the supply of goods and services.
State Tax GST Bill VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entrance Tax, and Entertainment Tax, Advertising Advertising, Lottery, Betting, Gambling and State Cases and Surcharges
Lok Subha passed the Constitution (12 Amendment) (GST) Bill, 2014 on August 8, 2016. Bill was passed with a two-thirds majority, with 443 members voting in their favor and there was no one against the final votes. In May 2015, Lok Subhash was presented, the bill was passed by the Rajya Sabha on August 3, 2016 with 203 votes and there was no one against it. The path of this historic GST Bill has now paved the way for the concept of a nation, a tax.
The Central Government has set an ambitious target of excluding goods and service tax (GST) from April 1, 2017. After unveiling a detailed road map for GST implementation, Union Finance Minister Arun Jaitley had announced this. This announcement was made by the state MP after the passage of the Constitution (122nd Amendment) (GST) Bill, 2014.
Provision of bill
- Considering the Indian federal structure in GST, there will be two components: Central GST (CGST) and State GST (SGST).
- For the goods and services passing through many states or imports, the center will recover another tax, the integrated GST (IGST)
- Alcohol for human consumption has been excluded from the GST scope.
- It imposes the center on supply of interstate supplies for two years or more and gives an additional tax of up to 1%. This will be done by the states from where the supply originated.
- Initially, GST would not be applicable to certain products such as petroleum crude, high speed diesel, and motor spit (petrol), natural gas and aviation turbine fuel. The GST Council will decide that they will be levied on GST.
- Tobacco and tobacco products will be subject to GST. The center can charge excise duty on tobacco.
- Based on the recommendations of the GST Council, the Parliament can provide Parliament for up to 5 years for compensation for revenue loss arising out of GST implementation.
Benefits of GST
For businesses and businesses
- Tax rates and structures across the country will be uniform. This will ensure certainty and ease of doing business, so, despite the option of doing business in the country, make it neutral.
- Due to the removal of cascading, there will be a seamless tax-credit arrangement across the price-chain, and across states borders. This will help reduce the hidden costs of doing business
- This compliance will be easy and transparent. There will be a strong and comprehensive IT system in the GST regime. Therefore, all taxpayer services such as registration, payment, returns etc. will be available to online tax payers.
- This will reduce the transaction costs of doing business which will ultimately lead to a better competition for business and industry.
- Including major central and state indirect taxes in GST will reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and promote Indian exports.
For Central and State Governments
- GST is supported with a strong end-to-end IT system and it will be easier and easier to implement so far than all other indirect taxes of the Center and the state.
- GST will have better tax compliance as a result of the strong IT infrastructure of the government, which will comply by taxpayers to curb leakages and incentives.
- GST will lead to higher revenue efficiency because the government is expected to cut the cost of collection of tax revenue.
- Due to the ratio of single and transparent tax to the value of goods and services: This will remove many hidden taxes for the transparency of taxes given to the final consumer.
- The burden of the overall tax on most commodities will come down due to weakening and prevention of leakage, which will benefit the consumers.
The goods and services tax has all the contents of a modern, seamless tax system. But its success will depend on the removal of all the stakeholders, and all the difficulties against the principles of GST. Goods and service tax will also contribute to a strong macro-economic parameter, thereby increasing investor sentiment. Eventually, consumers will be the ultimate beneficial because it will eliminate the taxable widespread impact of tax.
What Cover in this article:
- What is GST?
- Central taxes replaced by GST Bill and state taxes subsumed by it.
- The Lok Sabha passed the GST Bill.
- Provisions of the Bill.
- Benefits of GST
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