Goods in addition to Services Tax (GST)
The authorities is going to curlicue out the Goods in addition to Services Tax (GST) from tomorrow (1st July 2017). Being the major pace inwards Indian Economy, the GST has became the most discussed theme nowadays. So y’all sure enough volition larn questions virtually GST inwards your upcoming competitive exams (especially banking exams). So hither is a quick persuasion on GST inwards questions in addition to answers format. Happy Reading 🙂
What is Goods in addition to Services Tax (GST) ?
Article 366 (12A) of the Constitution every bit amended yesteryear 101st Constitutional Amendment Act, 2016 defines the Goods in addition to Services taxation (GST) as a tax on render of goods or services or both.
GST is a goal based taxation on consumption of goods in addition to services.
In a nutshell, only value improver volition live taxed in addition to burden of taxation is to live borne yesteryear the lastly consumer.
Why was the Constitution of Republic of Republic of India amended inwards the context of GST ?
Currently, the financial powers bet-ween the Centre in addition to U.S.A. are clearly demarcated inwards the Constitution amongst almost no overlap betwixt the respective domains. The Centre has the powers to levy taxation on the industry of goods. While U.S.A. lead maintain the powers to levy taxation on the sale of goods. In the illustration of Inter-State sales, the Centre has the might to levy a taxation (the Central Sales Tax) but, the taxation is collected in addition to retained solely yesteryear the States. As for services, it is the Centre solitary that is empowered to levy service tax.
Introduction of the GST required amendments to the Constitution in addition to then every bit to simultaneously empower the Centre in addition to U.S.A. to levy in addition to collect this tax. The Constitution of Republic of Republic of India has been amended yesteryear the Constitution (One Hundred in addition to First Amendment) Act, 2016 for this purpose. Article 246A of the Constitution empowers the Centre in addition to U.S.A. to levy in addition to collect the GST.
What are the benefits which the Country volition accrue from GST ?
Introduction of GST would live a real pregnant pace inwards the plain of indirect taxation reforms inwards India. By amalgamating a large number of Central in addition to State taxes into a unmarried taxation in addition to allowing set-off of prior-stage taxes, it would mitigate the sick effects of cascading in addition to pave the agency for a mutual national market.
For the consumers, the biggest gain would live inwards damage of a reduction inwards the overall taxation burden on goods, which is currently estimated at 25%-30%. Introduction of GST would likewise brand our products competitive inwards the domestic in addition to international markets. Studies present that this would forthwith spur economical growth.
There may likewise live revenue gain for the Centre in addition to U.S.A. due to widening of the taxation base, growth inwards merchandise volumes in addition to improved taxation compliance. Last but non the least, this tax, because of its transparent character, would live easier to administer.
What would live the business office of GST Council ?
A GST Council would live consti-tuted comprising the Union Fina-nce Minister (Who volition live the Chairman of the Council), the Min-ister of State (Revenue) in addition to the State Finance/Taxation Ministers to brand recommendations to the Union in addition to U.S.A. on diverse issues.
How volition decisions live taken yesteryear GST Council ?
The Constitution (One Hundred in addition to First Amendment) Act, 2016 provides that every determination of the GST Council shall live taken at a coming together yesteryear a bulk of non less than 3/4th of the weighted votes of the members acquaint in addition to voting. The vote of the Central Government shall lead maintain a weightage of 1/3rd of the votes cast in addition to the votes of all the State Governments taken together shall lead maintain a weightage of 2/3rd of the full votes cast inwards that meeting. One one-half of the full number of members of the GST Council shall found the quorum at its meetings.
Who is liable to pay GST nether the GST regime ?
Under the GST regime, taxation is payable yesteryear the taxable someone on the render of goods and/or services. Liability to pay taxation arises when the taxable someone crosses the turnover threshold of Rs.20 lakhs (Rs.10 lakhs for NE & Special Category States) except inwards sure specified cases where the taxable someone is liable to pay GST fifty-fifty though he has non crossed the threshold limit.
What is HSN ?
HARMONISED SYSTEM OF NOMENCLATURE(HSN)code shall live used for classifying the goods nether the GST regime.
What is GSTN in addition to its business office inwards the GST regime ?
GSTN stands for Goods in addition to Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been fix to cater to the needs of GST. The GSTN shall provide a shared information technology infrastructure in addition to services to Central in addition to State Governments, taxation payers in addition to other stakeholders for implementation of GST.
B. Srinivasa Rao