GST also known as the Goods and
Services Tax is defined as the giant indirect tax structure designed to support
and enhance the economic growth of a country. More than 150 countries have
implemented GST so far. However, the idea of GST in India was mooted by
Vajpayee government in 2000 and the constitutional amendment for the same was
passed by the Loksabha on 6th May 2015 but is yet to be ratified by the
Rajyasabha. However, there is a huge hue and cry against its implementation. It
would be interesting to understand why this proposed GST regime may hamper the
growth and development of the country.
Benefits of GST as under:
• It would introduce two-tiered
One-Country-One-Tax regime.
• It would subsume all indirect
taxes at the center and the state level.
• It would not only widen the tax
regime by covering goods and services but also make it transparent.
• It would free the manufacturing
sector from cascading effect of taxes, thus by improve the cost-competitiveness
of goods and services.
• It would bring down the prices
of goods and services and thus by, increase consumption.
• It would create
business-friendly environment, thus by increase tax-GDP ratio.
• It would enhance the ease of
doing business in India.
India has adopted dual GST
instead of national GST. It has made the entire structure of GST fairly
complicated in India. The centre will have to coordinate with 29 states and 7
union territories to implement such tax regime. Such regime is likely to create
economic as well as political issues.
There are 3 taxes applicable under this system: CGST, SGST & IGST.
CGST:
Collected by the Central Government on an intra-state sale (Eg: transaction
happening within Maharashtra)
SGST:
Collected by the State Government on an intra-state sale (Eg: transaction
happening within Maharashtra)
IGST:
Collected by the Central Government for inter-state sale (Eg: Maharashtra to
Tamil Nadu)
Non-GST Goods such as:
(i)
Petroleum crude
(ii)
High-speed diesel
(iii)
Motor spirit (commonly known as petrol);
(iv)
Natural gas;
(v)
Aviation turbine fuel; and
(vi) Alcoholic
liquor for human consumption. in respect of following transactions only:
Resale /
Use in manufacturing or processing /
Use in the telecommunication network or in mining or in the generation
or distribution of electricity or any other power.
Milestone
2006
February 28, 2006- Budget 2006-07 - FM proposes
introduction of GST from 1 April 2010
2007
March 20, 2007 -Phasing out of CST began from April 2007 with the
reduction in CST rate from 4% to 3% May, 2007 - Committee of State Finance
Ministers constituted Joint Working Group in May, 2007
2008
December 17, 2008- EC finalised its views on broad GST structure -
consensus on Dual GST (Central and State GST)
2009
November 10, 2009- First Discussion Paper on GST was released by EC
December 31, 2009 -The 13th Finance Commission released its Report on GST
in December, 2009
2011
March 23, 2011- Constitution Amendment Bill to enable roll out of GST was
tabled in Parliament
2013
November 18, 2013- EC rejected Central Government's proposal to include
Petroleum products under GST
2014
December 19, 2014- Revised Constitution Amendment Bill tabled in
Parliament
2015
May 7, 2015- Passage of Constitutional Amendment Bill on GST in Lok Sabha
Oct 23, 2015 - The Joint Committee constituted by Empowered release its
business process reports on GST related to payment, registration, refund in
public domain for comments
2016
June 14, 2016- Model draft law released in public domain
August 3, 2016- Passage of Constitutional Amendment Bill on GST in Rajya
Sabha.
September 22, 2016 First Meeting of GST Council held.
November 3, 2016-GST rates decided. The four slabs has been set at 5%,
12%, 18% and 28%.
November 8, 2016 -GST portal was made live for migration of existing tax
payers.
November 26, 2016- Revised Draft Model GST Law ,Draft IGST Law and
Compensation Law released.
2017
January 16, 2017- Consensus on dual control
February 18, 2017 - Council cleared the draft laws for compensating the
states.
March 4, 2017 – The GST Council cleared the crucial CGST and IGST Bills
March 16, 2017 - The GST Council cleared the crucial SGST and UTGST Bills
March 20, 2017 – Union Cabinet approves draft GST Bills
March 29, 2017- Lok Sabha clears four GST related bills.
April 6, 2017- Rajya Sabha okays CGST, IGST, Compensation & UTGST
Bills.
May 18, 2017- GST Council finalizes tax rates on goods and services
May 18, 2017 – GST Council clears all nine rules
June 3, 2017- GST Council clears rules, states agree to July 1 rollout
June 11, 2017- GST Council reduces rates of 66 items.
June 18, 2017 - Council Approves Anti- Profiteering mechanism.
July 1, 2017- With GST , India takes a leap towards ‘one nation one tax’
Sources:- Different Websites / Journals / News Paper
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