BASIC IMPORTANT NOTES TO GST FOR GPSC & UPSC

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HISTORY OF GST

  • France was the country where GST was implemented in 1954.
  • In India, Under Direction of kelker Committee, lead by Vijay Kelker
  • Constitution right was given by 368.
  • To approve the amendment in constitution 75% majority is must.
  • Assam was the state who has approved Implementation of GST in India.
  • The Honorable Prime Minister of India MR. Narendra Modi had approved the bill on 08/09/2016.
  • GST was implemented by amending constitution by 101st Amendment Act, 2016.
     
    WHY GST WAS NEEDED AS A LAW? WHAT WAS THE SYSTEM OF GST IMPLEMENTATION IN INDIA?
  • Before implementing GST there was total 17 laws related to taxation and others.
  • Out of 17, eight laws was related to Central Govt. while remaining nine was related to State Govt.
  • The above laws Includes Excise Act, VAT Act, CST Act, Service tax etc.
  • The all old laws had some shortcomings, Some where No ITC was allowed, elsewhere double taxation etc.
  • The credit of excise was not allowed to trader, where the CST credit was not allowed for dealer registered under VAT act under respective states.                                                                             
                                                                   
    IMPLEMENTATION OF GST  
  • Finally, GST was implemented on 01-07-2017 under state as well as central system of law.
  • GST has been implemented via CGST Act, SGST Act, and UTGST Act.
  • India has adopted “DUAL GST” System of Law, IGST has been implemented as a SPV.
  • GST Act has subsumed all the taxes levied by previous laws including Entertainment taxes (other than local Municipal taxes), Purchase taxes etc.
  • The Basic Customs duty (BCD), Stamp duty, State Excise etc. still levied under respective acts as these taxes are not merged with GST.
     
    BENEFITS OF GST
  • GST law has created “Unified National Market”
  • GST law has avoided double taxation levy being a major problem under previous taxation laws of India.
  • It has been estimated that, Due to GST Govt. revenue is going to be increased.
  • GST Can be used as “Make In India” Initiative.
     
    TAXABLE EVENT UNDER GST
  • It is an event occurrence of which attracts levy of GST under Section 9 of CGST Act, 2017.  
  • The taxable event under GST is a Supply, which is defined under Section 7 of CGST Act, 2017.
  • GST is a destination based consumption tax where credit of taxes paid earlier is allowed and burden is on the person who has consumed the product.
  • Under IGST, One is origin where other state is destination, 
  • To solve difficulty of states as well as central govt. IGST has been implemented as a “SPV”.

 

                               

                                                                                                                                                               

        



 

       

               

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