What is GST?

GOODS & SERVICE TAX means a tax on supply of goods & services except on supply of alcoholic liquor for human consumption. The unique feature of GST is the integration of taxes on goods and services. It extends to whole of India including the state of Jammu & Kashmir. It has been imposed both by centre and states. It is a destination based tax i.e. tax is payable in the state where goods or services are finally consumed.

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EVOLUTION OF GST

GST is already adopted in 165 countries and India joins the club as 166th country. The journey of GST started in the year 2003. The critical millstones are as below.

  • 14th June 2016 – Draft Model GST Law on public domain
  • 3rd Aug – Rajya Sabha passes the Bill
  • 8th Aug – Lok Sabha passes the Bill
  • 8th Sept – President Ascent
  • 12th Sept – Cabinet Approval to form GST Council
  • 16th Sept – Govt. notifies GST Council
  • 22nd /23rd Sept - First Council Meeting
  • 26th Sept – Draft Rules on public Domain – Reg. Pymt. & Tax Invoice
  • 27th Sept – Draft Return Rules & Return Format
  • WHAT IS CONSTITUTIONAL 101 AMENDMENT ACT, 2016

    The Constitution 101st Amendment Act has received presidential assent on 8th September 2016. In this amendment Special provisions were made with respect to goods and services tax.

    Important Provisions:
  • Introduced new Article 246A
  • Introduced Article 269A
  • Introduced Article 279A
  • INTRODUCED NEW ARTICLE 246A:

    This article grants power to both parliament and state legislatures to make laws with respect to goods and services tax (GST). The Parliament will retain exclusive power to make laws with respect to GST.

    INTRODUCED ARTICLE 269A:

    In case of the inter-state trade, the tax will be levied and collected by the Government of India and shared between the Union and States as per recommendation of the GST Council.

    INTRODUCED ARTICLE 279A:

    This article provides for constitution of a GST council by president within sixty days from this act coming into force.

    This blog written by Ms. Ruchi Dua (Accounts Trainer at Vtech Academy of Computers)- ACCOUNTS | FINANCE | BANKING | INSURANCE Career Programs

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