Table of Contents
What is the main objective behind the GST implementation?
“The main aim of Goods and Services (GST), which Prime Minister Narendra Modi termed pretty much as good and straightforward Tax. It is to simplify the taxation mechanism, to reduce the burden of taxes, and clarify conformity of the tax payment.”
What is the theme of GST?
GST slogan is “One Nation One Tax” and it comes up with the theme of “Simpler Tax Regime”.
What are the main features of GST?
4 Key Features of GST (Goods and Service Tax)
- Single Indirect Tax. GST has been introduced as a single, unified tax reform.
- Input Tax Credit System. One of the most prominent GST features in India is the input tax credit.
- GST Composition Scheme. SMEs with an annual turnover of up to Rs.
- Four-Tier Tax Structure.
What are the objectives of GST explain Class 12?
To increase the tax base by bringing more number of taxpayers and increase tax revenue. To simplify tax return procedures through common forms and avoidance of visiting tax departments. To provide online facilities for payment of taxes and submission of forms.
Who implemented GST in India?
Seven months after the formation of the then Modi government, the new Finance Minister Arun Jaitley introduced the GST Bill in the Lok Sabha, where the BJP had a majority. In February 2015, Jaitley set another deadline of 1 April 2017 to implement GST.
What are the important stages in implementation of GST?
Putting in place a dispute resolution and appeals processes. Determining details of pricing policies and tax calculations on inter-state transfers of goods. Confirm how input VAT credits will be matched to output VAT payments – a complex and controversial requirement for VAT reporting.
What are the three objectives of GST?
3. Objectives Of GST
- To achieve the ideology of ‘One Nation, One Tax’
- To subsume a majority of the indirect taxes in India.
- To eliminate the cascading effect of taxes.
- To curb tax evasion.
- To increase the taxpayer base.
- Online procedures for ease of doing business.
- An improved logistics and distribution system.
How is GST implemented?
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 tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of the central government and all the states.
What are the problems in implementation of GST?
There is also a logistical challenge to the implementation of GST. Till date, not all the 31 states have passed the State GST Acts. Some key states like West Bengal and Punjab are yet to pass the GST Bill and if the bills are not passed before July 01st, it could create a massive mismatch for trans-India trade.
What are the benefits of GST in India?
Benefits of GST to the Indian Economy Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise Less tax compliance and a simplified tax policy compared to the current tax structure Removal of cascading effect of taxes i.e. removes tax on tax
How will GST help in the fight against tax evasion?
So, to come out of these problems a big step has to be taken by the government which is in the form of GST. India’s tax system is more complex and GST will help in the simplification of tax system in our country and help in the reduction of tax evasion. GST will be India’s biggest tax reform since independence (1947).
What is the meaning of GST?
GST(Goods and Service Tax) is a multi-stage, designation based comprehensive tax imposed at each value addition stage. The replacement of multiple indirect taxes in the country has helped India’s Government achieve its “One Nation One Tax” program.
Who will bear the GST in the supply chain?
The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. GST is a consumption based tax i.e. tax accrues to the State where goods and / or services are finally consumed. Report No. 11 of 2019 (Indirect Taxes – Goods and Services Tax) 2 1.2.2 Taxes subsumed