WELCOME YOU TO ALL IN GST ERA..🤗🤗
So guys one of the biggest reforms in history of indian economy GST is applicable from today. but sadly not most of us have 100 % knowledge about it instead of the fact that it is going to directly infulence our lives .
History and Timeline of GST:-
a ) 2000 - vojpayee gov setup a comitee to draft gst law.
b) 2004 - a task force concluded gst must be implemented to improve tax structure.
c) 2006 - finance minister proposes gst introduction from april 1 ,2010.
d) 2007 - cst rates reduced from 4% to 3%.
e) 2008 - empower commitee finalises dual gst structure which means thesr seprate sgst and cgst.
f) 2010 - project to computerise commercial taxes launched but implementation of gst posponed.
g) 2011 - constitution amendment bill to enable gst law introduced.
h) 2013 - standing commitee tables its report on gst.
i) 2014 -gst bill reintroduced in parliement by finance minister.
j) 2015- gst bill passed in lok sabha but not in rajya sabha.
k) 2016 - gst network goes live.
l) 2017 - four supplementary bill passed in both lok sabha and rajya sabha.
FINAL GST TO BE IMPLEMENTED FROM TODAY.😊😊
It is an indirect tax that will be lieved on both goods and services . Except custom duty all kinds of indirect central and state taxes will be merged under it . it will be applicable in the whole country except jammu and kashmir . under it a single product will be taxed at the same rate in every state of country thus we can alse call it ONE NATION ONE TAX . However it does not mean that tax charrged on every item will be same as we cannot charge same amount of tax on shoes as we used to charge on liquor , that is why the tax charged on nessecties will be lower and tax charged on luxries will be comparatively higher.
Also Read Our:- WHO IS THE NEXT PRESIDENT OF INDIA??
There will be four slabs of GST:-
1) 5% that will cover various
necessities like pickles, food powder, essentia agricultural products etc.
2) 12% this will include various processed food items and some daily products etc.
3) 18% this will include AC, refrigerators, laptops and other semi-luxury goods etc.
4) 28% this will include tobacco products, alcohol, aerated drinks, luxury cars and some ‘white goods’ etc.
The structure of GST will be divided into three components:-
1) Central Goods and Services Tax(CGST).
2) State Goods and Services Tax(SGST).
3) Inter State GST.
The CSGT will merge the Central indirect taxes like the service tax, excise duty, additional customs duty, additional special excise duty.
whereas SGST will subsume the State indirect taxes like VAT, entertainment tax, octroi and others.
The CGST will be charged by the Central Govt whereas the SGST will be charged by the state government.
In situation of an interstate transactions,the IGST will be collected by the Central Government.
GST will allow the Input tax credit for the taxes paid on the purchase of goods and services during a commercial activity and input tax credit of CGST and SGST will be provided by the respective stategovernments and central government.
EXAMPLES:-
Before GST:-
if a person sends goods from yamunanagar to rohtak price rs 1000 than he will have to pay rs 100 as VAT@10% of rs 1000 and if from rohtak he send those goods to jaipur with a profit of rs 1000 at 2100 rs selling price he will pay rs 210 as cst @10% of rs 2100 which means final price of goods will be rs 2310.
After GST:-
if a person sends goods from yamunanagar to rohtak price rs 1000 than he will have to pay rs 50 as sgst and rs 50 as cgst which cost the product to be 1100 rs and if from rohtak he send those goods to jaipur with a profit of rs 1000 at 2100 rs selling price he will pay rs 110 rs as igst @ 10prcnt of 110 which means final price of goods will be rs 2210.
The above examples clearly depicts that with the use of GST we an get rid off from the problem of implementing tax on tax.
Some shortcomings of GST are:-
Services will become expensive takes time for the people to understand its procedure increase complier based work for thebusinessman.
Personal view:- However,GST is a long term objective and the positive effect shall be seen in the long run .
This can happen if GST is implemented in a proper way .
The rate of GST also plays a crucial role in deciding the actual impact of GST on the common man.
Maybe this "ONE NATION, ONE TAX"
Really proves to be a game changer in our economy and proves to be beneficial to both the common man And country.
Now lets witness this great era of One Nation One Tax.
WELCOME YOU TO ALL IN GST ERA.
1st JULY 2017
The Historical Moment For INDIA.
WRITER:- RAGHAV GARG
EDITOR:- TROLLING INFO - ONLINE INFORMATION BLOG
ALSO CHECK OUR ONE MORE ARTICLE ABOUT GST:-
History and Timeline of GST:-
a ) 2000 - vojpayee gov setup a comitee to draft gst law.
b) 2004 - a task force concluded gst must be implemented to improve tax structure.
c) 2006 - finance minister proposes gst introduction from april 1 ,2010.
d) 2007 - cst rates reduced from 4% to 3%.
e) 2008 - empower commitee finalises dual gst structure which means thesr seprate sgst and cgst.
f) 2010 - project to computerise commercial taxes launched but implementation of gst posponed.
g) 2011 - constitution amendment bill to enable gst law introduced.
h) 2013 - standing commitee tables its report on gst.
i) 2014 -gst bill reintroduced in parliement by finance minister.
j) 2015- gst bill passed in lok sabha but not in rajya sabha.
k) 2016 - gst network goes live.
l) 2017 - four supplementary bill passed in both lok sabha and rajya sabha.
FINAL GST TO BE IMPLEMENTED FROM TODAY.😊😊
It is an indirect tax that will be lieved on both goods and services . Except custom duty all kinds of indirect central and state taxes will be merged under it . it will be applicable in the whole country except jammu and kashmir . under it a single product will be taxed at the same rate in every state of country thus we can alse call it ONE NATION ONE TAX . However it does not mean that tax charrged on every item will be same as we cannot charge same amount of tax on shoes as we used to charge on liquor , that is why the tax charged on nessecties will be lower and tax charged on luxries will be comparatively higher.
Also Read Our:- WHO IS THE NEXT PRESIDENT OF INDIA??
There will be four slabs of GST:-
necessities like pickles, food powder, essentia agricultural products etc.
2) 12% this will include various processed food items and some daily products etc.
3) 18% this will include AC, refrigerators, laptops and other semi-luxury goods etc.
4) 28% this will include tobacco products, alcohol, aerated drinks, luxury cars and some ‘white goods’ etc.
The structure of GST will be divided into three components:-
2) State Goods and Services Tax(SGST).
3) Inter State GST.
The CSGT will merge the Central indirect taxes like the service tax, excise duty, additional customs duty, additional special excise duty.
whereas SGST will subsume the State indirect taxes like VAT, entertainment tax, octroi and others.
The CGST will be charged by the Central Govt whereas the SGST will be charged by the state government.
In situation of an interstate transactions,the IGST will be collected by the Central Government.
GST will allow the Input tax credit for the taxes paid on the purchase of goods and services during a commercial activity and input tax credit of CGST and SGST will be provided by the respective stategovernments and central government.
EXAMPLES:-
if a person sends goods from yamunanagar to rohtak price rs 1000 than he will have to pay rs 100 as VAT@10% of rs 1000 and if from rohtak he send those goods to jaipur with a profit of rs 1000 at 2100 rs selling price he will pay rs 210 as cst @10% of rs 2100 which means final price of goods will be rs 2310.
After GST:-
if a person sends goods from yamunanagar to rohtak price rs 1000 than he will have to pay rs 50 as sgst and rs 50 as cgst which cost the product to be 1100 rs and if from rohtak he send those goods to jaipur with a profit of rs 1000 at 2100 rs selling price he will pay rs 110 rs as igst @ 10prcnt of 110 which means final price of goods will be rs 2210.
The above examples clearly depicts that with the use of GST we an get rid off from the problem of implementing tax on tax.
Some shortcomings of GST are:-
Services will become expensive takes time for the people to understand its procedure increase complier based work for thebusinessman.
Personal view:- However,GST is a long term objective and the positive effect shall be seen in the long run .
This can happen if GST is implemented in a proper way .
The rate of GST also plays a crucial role in deciding the actual impact of GST on the common man.
Maybe this "ONE NATION, ONE TAX"
Really proves to be a game changer in our economy and proves to be beneficial to both the common man And country.
Now lets witness this great era of One Nation One Tax.
WELCOME YOU TO ALL IN GST ERA.
1st JULY 2017
The Historical Moment For INDIA.
WRITER:- RAGHAV GARG
EDITOR:- TROLLING INFO - ONLINE INFORMATION BLOG
ALSO CHECK OUR ONE MORE ARTICLE ABOUT GST:-
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