GOODS AND SERVICE TAX (GST) INDIA

GST or the Goods and Services Tax is an indirect tax that brings together most of the taxes that are imposed on all goods and services (except a few) under a single banner. This is in contrast to the current system, where taxes are levied separately on goods and services. The GST, however, is a comprehensive form of tax based on a uniform rate of tax for both goods and services. However, the GST is payable only at the final point of consumption. Our government moved a Constitutional Amendment Bill in the Lok Sabha to roll out goods and services tax (GST), setting in motion plans to launch this ambitious tax reform from April 1, 2016. The Bill incorporates a number of provisions to get the support of states whose opposition had held back what finance minister Arun Jaitley called 'biggest tax reform since 1947' for almost five years. A National Institute of Public Finance and Policy (NIPFP) team tasked with recommending a revenue-neutral level for the goods and services tax (GST) has suggested as many as 16 rates, corresponding to different scenarios. The final decision on the tax rate will be taken by the GST Council. By the introduction of the goods and services tax (GST). The tax should lead to a reduction of 5-7 percent in the prices of consumer goods, which would help to control inflation. As the prices of consumer goods fall, consumption would increase considerably. A consumption increase would in turn lead to an increase in production. GST is thus expected to add 1.5-2 percentage growth. The government may bring the much-awaited GST Bill, which provides for a uniform indirect tax structure, in the current session of Parliament. On the other side, the Direct Taxes Code (DTC) was under the consideration of the government. A large number of states have acceded to the Centre's proposal on a higher annual turnover threshold of Rs25 lakh aimed at giving relief to small and marginal traders and shopkeepers, raising hopes for early finalization of the new tax framework. We are also waiting for a new start.