“If we decide, we can change the pitiable condition of Indian Economy.

We have to take up the responsibility and show Commitment”   – Narendra ModiGST, a vast concept, which aims at simplifying the complicated and giant structure which the country was following, i.e. the indirect  tax structure. Moreover according to GST the expectation has grown and  expected that it will enhance the economic growth of our country and will create a scope for domestic and international market.

This Goods and Services Tax,which is already implemented by 150 countries, and the idea bought for the same in our country, by Vajpayee government is expected to be a great reform in a nation of  1.324billion people, but the situation is interrupted because of the low understanding of the bill.GST is a comprehensive tax, levied on manufacturing, sale, consumption  constitution of India initiates, VAT to be implemented on national level in India unlike before where excise duty, service duty at central level and VAT at the state level was implemented which was a very complicated tax system where  at times customers use to pay tax without any knowledge and now GST unified these taxes and created a uniform market throughout the country. Earlier there was tax on tax problem, when a customer use to receive a bill, he had to pay so many taxes and now GST focuses on resolving such problems.Now to know whether GST is boon or a bane it becomes very important to know the difference between both indirect taxation and GST, so indirect taxation involved VAT on goods and services separately but at moment, GST is common for both making it simpler taxation system not only that indirect taxation gave rise to high tax rate as it involved several tax rates, when goods were transported from one state to another the tax rate, n number of tax rates were involved which will be no more a problem once GST is implemented, this explains the difference between both tax system.Implementation of GST was not that simple, bill did not implemented so easily, In 2000 the Vajpayee government started discussion on GST by setting up an empowered  committee, headed by Asim Das Gupta, the task was to design the model of the bill and its content, later on in 2006, Union Finance Minister P. Chidambaram moved towards GST  and proposed to introduce the same on 1st April,2010.

However , empowered committee of State Finances Minister released its First Discussion paper on GST in Nov,2009. On 6th may,2015 Lok Sabha passed the much delayed constitutional amendment Bill, hence paving the way for a new bill for a “UNIFORM TAX REGIME”. Not sooner but later and finally the bill was finally announced to be implemented in midnight of 1st july,2017, by President  Pranab Mukherjee and Prime minister Narendra Modi.

The country was not still ready to accept it but changes are constant and the bill was finally implemented.When it comes to GST, there are three terms which an individual should be aware about, it consists of three components.As aforementioned , CGST being one of them. It stands for Central Goods and Services Tax which will be levied by the central government on all goods and services, reducing the cascading effect, revenue collected will go to the central government whereas input tax credit will be given to state government.SGST, is State Goods and Services tax which will be levied by the state government on all goods and services and intra state transactions and the revenue will be collected by the state.IGST, Inter state goods and services tax, levied when goods are transported from one state to another, then no CGST OR SGST is applied only IGST is followed, revenues are collected by the state and central government as fixed by them.GST  with multiple tax rate system, government has provided  slabs i.

e.0%, 5%, 12%, 18%, 28%, multiple tax rate for multiple goods, petroleum products are still outside the purview of GST, with recent amendments done it is known the rates are suppose to be and looks like- 0%,4%,16%,24%.GST with time could be one of the best reforms,  with removing the cascading effects to making products competitive in the domestic and international market, it acted as a boon to a major part of the country as we see threshold has been increased under gst regime i.e. if the turnover is more than 20 lakhs then only tax is to be paid, before VAT was paid on the turnover of 5 lakhs also not only that food industry has received great benefits to restraunt owners, and also to their customers adding on, e-commerce such as flipkart, amazon use to pay various taxes now its one, GST,all provisions are clearly mapped out. Logistic industries use to spend huge amount of money on their warehouses due to interstate movement of goods  but now that cost can be used for working capital due to  implementation of GST , returns, filing and  online GST form operating has become very easy unlike before, media and  entertainment industry have observed a mixed effect  to both end users and to entertainment industry owners , states where tax on tickets were already low , are now facing increased price of tickets whereas in states like Karnataka  where tax were already high on movie tickets, are now facing no problem with the implementation of GST.

Single tax rates could not have been a better option because there are products which are taxed higher, a biscuit and a car cannot be taxed with same rates… rate slabs are still going through revision.In a long time, this tax system will definitely be a boon but to the present scenario it seems as a confused and complicated system due to improper implementation and low understanding of the bill. Bill is under revision because a proper infrastructure is not ready yet, it will take time step by step , it cannot  be executed in one go.”ONE BILL, ONE NATION”  


I'm Katy!

Would you like to get a custom essay? How about receiving a customized one?

Check it out