Table of Contents
INTRODUCTION
In India, the Goods and Service Tax came into force in 2000 after a committee was set up by then Atal Bihari Vajpayee.
Union Ministry of finance proposed GST introduction from 1st April 2010. but the Constitution Amendment Bill to facilitate the introduction of GST law was introduced in 2011. Hence, 4 supplementary GST bills were passed in Lok Sabha and approved by the cabinet.
GST came into force on 1st July 2017 and replaced below- mentioned central taxes.
- Service Tax
- Excise Duties
- Central Excise duties
- Cesses and Surcharge
Goods and Services Tax, is an indirect tax imposed on the supply of goods and services. It is a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, excise duty, service taxes, etc. Goods and Services are included under India's single domestic indirect taxation law. Tax is charged at each point of sale.
Meaning
GST is a tax that has replaced multiple indirect taxes. i.e – VAT, Service Taxes, Excise, etc.
Objective
Objectives of the GST Service Tax include-
- Elimination of the Cascading tax effect
- The subsumption of all indirect taxes
- Increase the tax to GDP ratio and revenue
- Decrease corruption level and tax evasion
- Increase tax compliance
- Increase in overall productivity and efficiency
Types of GST
- SGST – State Goods and Services Tax
- CGST – Central Goods and Services Tax
- IGST – Integrated Goods and Services Tax
- UGST – Union Territory Goods and Services Tax
State Goods and Services Tax (SGST)
The State Government charges SGST on intrastate Goods and services transactions. Subsequently, the revenue is collected by the state where the transactions in question were carried out.
Central Goods and Services Tax (CGST)
The Central Government charges CGST on the intra-state transaction of goods and services. The concerned body is also responsible for collecting the revenue generated through this tax.
Integrated Goods and Services Tax (IGST)
This GST tax is charged on inter-state transactions of goods and services and applied on imports and exports. The Centre and State share the revenue collected through IGST as per the GST bill. The State goods and service tax portion of this tax is collected by the state where the goods and services in question were consumed.
Union Territory Goods and Services Tax (UGST)
This GST tax is levied by Union Territories and charged on all transactions carried out in any UT in India. It is similar in terms of payment rules on the GST platform and distribution.
Items that are exempted from GST when sold loose
“The GOODS AND SERVICE TAX _Council has exempt from GST, all items specified below in the list, when sold loose, and not pre-packed or pre-labeled. They will not attract any GST. The decision is of the GST_Council and no one member,” Sitharaman, who is the chairperson of the GST council said
Here is a list of the items which have been exempted from the GST when sold loose
PRODUCTS EXEMPTED FROM GST WHEN SOLD LOOSE
PULSES
WHEAT
RYE
OATS
MAIZE
RICE
FLOUR
SUJI
BESAN
PUFFED RICE
CURD/LASSI
This was a unanimous decision by the GST Council. Sitharaman tweeted, ”All states were present in GST Council when this issue was presented by the Group of Ministers on Rate Rationalisation in the 47th meeting held in Chandigarh on Jun 28, 2022,”
Conclusion
The introduction of GST is confirmed as one of the biggest tax reforms in India. GST has brought the entire country under one tax regime. GST bill has replaced 17 indirect tax with one uniform tax. it has lowed the cost of goods and boosted demand for them, bringing in more revenue for both the Centre and State Governments.
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