GST Day

20, Jul 2018

Prelims level : Indian Economy Mains level :
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To commemorate first year of GST reform GST day was celebrated on 1st July 2018.

Constitution 101st Amendment Act- an indirect tax on the supply of goods and services. Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%,18% and 28%.

Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

Components of GST:

1. CGST(central GST)-Collected by central govt

2. SGST(state GST)-collected by state govt

3. IST(interstate GST)-collected by central govt

Destination-based tax- Consider goods manufactured in Maharashtra and are sold to the final consumer in Karnataka. Since Goods & Service Tax is levied at the point of consumption, in this case, Karnataka, the entire tax revenue will go to Karnataka and not Maharashtra.

GST council – constitutional body make recommendation to state and central government on issues related to GST.

Chair-Union Finance minister

Member-the union minister of state in charge of Revenue or Finance, State finance ministers

GST council govern:

1. Place of supply

2.Threshold limit

GST Rates

Special rates to be raised during natural calamity

Special GST for certain states

Goads exempted from GST: Petroleum products, alcoholic drink, electricity, and real estate are taxed separately by the individual state Governments.

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