Know Your GST

France was the first country to introduce GST in 1954.

India will follow the Dual structure of GST. Canada and Brazil also follow the same system.

There are around 160 countries that have adopted GST is some or the other form.

GST was mooted 17 years ago.

Atal Bihari Vajpayee started the discussions on GST for the first time.

The first committee formed during the Vajpayee government in 2000 was headed by Asim Dasgupta.

Asim Dasgupta was the finance minister of Bengal and remained the head of the GST committee till 2011.

Vijay L. Kelkar chaired a task force in 2004. It was Kelkar who suggested a comprehensive GST.

GST was slated to roll out from 1st April,2010. P. Chindabaram had set this date.

GST was introduced as the Constitution (122nd Amendment) Bill, 2014.

The GST bill was renumbered as the 101st Amendment, since the Bill got delayed.

The GST Council is headed by Arun Jaitley who is currently the Finance Minister.

The Indirect tax reformation process began with the introduction of MODVAT in 1986. Vishwanath Pratap Singh introduced Modified Value Added Tax (MODVAT).

GST will be governed by 3 Central Laws and 29 state laws.

The known authorized capital of the GSTN is ₹10 crores (US$ 1.5 million). The centre holds 24.5% shares while other 24.5% is with the states and the remaining is with private banks.

The Goods and Service Tax Network (GSTN) is Non-profit organization responsible for making a uniform interface for the tax payer.

The GSTN was incorporated on 28th March 2013.

There will be a common and shared IT infrastructure between the Centre and the State.

GST will be applicable pan-India except Jammu & Kashmir.

A net gain of ₹1580 crores is estimated if GST becomes applicable in Jammu and Kashmir.

On September 10,2016, the Constitution was amended to introduce GST and the corresponding powers to collect existing indirect taxes was removed. However, a clause inserted in the constitution allows the government to collect the existing taxes up to 1 year i.e.September 16th, 2017.

If the act does not come into force before September 16 th , 2017, the government will lose the power to collect any indirect taxes.

Consideration is not a necessary condition for a supply to be taxable under GST as per Schedule 1 of Model GST law

Alcoholic liquor for human consumption has been kept out of the ambit of GST.

Demerit goods like tobacco and luxury goods will attract Sin Tax.

In the budget speech of February 2013, Chindambaram announced that the government had made provisions of ₹9,000 crores for compensation to states.

In October 2013, Narendra Modi opposed the GST bill as Gujarat would have to face a loss of ₹14,000 crores per annum.

The constitution amendment bill had lapsed when the 15th Lok Sabha was dissolved.

There will be a growth of 4.2% in the Gross Domestic Product.

The President gave his assent to the GST amendment bill on 8th September 2016.

In 2016, the Bill was passed by Rajya Sabha and ratified by the states within 23 days.

The GST bill was introduced in Lok Sabha on December 19th, 2014 by Finance Minister Arun Jaitley.

The other five Union Territories – Chandigarh, Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, and Lakshwadeep – will adopt the UtGST (Union Territories Goods and Service Tax).

Delhi and Puducherry which are union territories with legislature will adopt SGST Act (State Good and Service Tax Act).

Professionals who are based in one state but provide services in other states will have to get registered under GST in the state where they are providing service. They will need to register as Casual Taxable Professionals.

Petroleum crude, high speed diesel, motor spirit (petrol), natural gas and ATF (aviation turbine fuel) are out of the purview of GST. They will continue to be taxed as per the current scenario.

An article in the constitution gives concurrent power to the Centre and State governments to make laws on the taxation of goods and services.


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