The History Of GST In Brief
The Federal Government set up a Fiscal Responsibility and Budget Management Task Force in 2003 which proposed substituting the outdated indirect tax system with the 2004 GST on the distribution system of all goods and services.
In his 2006-07 budget statement, the Union Finance Minister expressed the drive further towards GST. Initially, it was planned to launch GST on 1 April 2010.
The Kelkar Task Force on Indirect Taxes proposed a detailed VAT Concept on Goods & Services Tax (GST).
A plan to implement a Regional GST Standard by 1 April 2010 was first discussed in the Budget Speech.
A Joint Working Group of Central / State Officers was formed.
The Elected Committee (EC) comprising of State Finance Ministers published the first article on GST in India.
115th Constitutional amendment The bill presented in Lok Sabha to change the constitution in order to make way for GST.
The GST Design Committee, consisting of officials of the Central / State Governments & Empowered Body, was created.
The architecture committee of the GST presented its report. On the basis of this paper, the EC introduced some changes to the constitutional reform bill. The decision to set up three committees was made by the EC vis-à-vis.
The Standing Committee of Parliament (PSC) sent its recommendation to Lok Sabha. The proposed reform bill has been amended based on the suggestions of the PSC & EC.
The Final Draft Constitutional Amendment Bill was submitted to the EC for approval.
The new draft constitutional bill has been submitted to the EC for approval.
The 115th Constitutional Amendment Bill of 2011 expired with the disintegration of the 15th Lok Sabha.
The bill of amendment to the Constitution was submitted to the EC after the authorization of the New Government.
The Cabinet accepted a resolution to bring a bill in Parliament amending the Constitution of India to promote the implementation of GST in India.
The Bill of Constitutional Amendment was approved by Lok Sabha on 06.05.15.
The Rajya Sabha approved the constitutional amendment bill (122nd) by unanimous vote on 03/08/16 and The Lok Sabha passed the bill by unanimous vote on 08.08.16.
The GST was officially introduced in India with the exception of the state of Jammu & Kashmir effective from 01/07/17. On 08/07/17, the State of Jammu & Kashmir introduced a resolution incorporating the terms of the Constitution Act 2016 (101st amendment). The President of India enacted a decree dated 08.07.17 expanding the terms of the CGST to the State of Jammu and Kashmir.
Benefits Of GST
There are many advantages of GST for the government, the customer, and the corporate community because it is an indirect tax that allows the government simple administration. It relieves the total tax pressure. Luxury goods are charged higher and essential goods are tax-free for customers. It helps companies achieve effective tax enforcement and strengthens corporate decision-making and spending.
GST accounts for one customer end tax payment because payment is given to the last seller in the line. Since it has been established how this tax is by far the most beneficial tax brought to the citizens until now after independence, one may appreciate the cancelation of all indirect taxes on products and services regulated or levied by the state and central governments.
With the implementation of Gst in India, the government is attempting to make India a uniform market with uniform tax rates and procedures, to eradicate the cascading impact by adopting all indirect taxes, and to enable for set-off across the overall value chain. GST has also managed to reduce the bulk of indirect taxes by absorbing them.
Goods And Services Tax Network
“Goods and Services Tax” Network (GSTN) is a non-profit entity founded by the govt as a private corporation under formerly Section 25 of the Companies Act, 1956.
The key aim of GSTN is to establish a website/platform for all GST-related parties involved, including stakeholders, taxpayers, and the government, to work together on a unified platform.