JAM Topic – GOODS AND SERVICE TAX (GST)

G.S.T

• Goods and Services Tax (GST) is an indirect tax applicable throughout India which replaced multiple cascading taxes levied (collected) by central and state governments.
• It was introduced as The Constitution (One Hundred and First -101 Amendment) Act 2017 following the passage of Constitution 122nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India.
• Under GST, goods and services are taxed at the following rates, 0%, 5%, 12% and 18%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 15% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.
• The rate of GST is 18% for soaps and 28% on washing detergents. GST on movie tickets is based on slabs, with 18% GST for tickets that cost less than Rs. 100 and 28% GST on tickets costing more than Rs.100. The rate on under-construction property booking is 12%
• Touted by the government to be India's biggest tax reform in 70 years of independence, the Goods and Services Tax (GST) was finally launched on the midnight of 30 June 2017, though the process of forming the legislation took 17 years (since 2000 when it was first proposed).
• A single GST replaced several existing taxes which include: central excise duty, services tax, additional customs duty, surcharges, state-level value added tax (VAT) and Octroi (it is a local tax collected on various articles brought into a district for consumption) and  Other levies which were applicable on inter-state transportation of goods has also been done away with in GST regime(scheme).