INTRODUCTION

Income tax known as an individual pay taxes to the government and government use that for the
benefits of society. Constitution law is the sovereign of all the laws under which all rules and
regulation cover constitution of India give authority to apply taxes if needed at any place of
India.
An income tax is a tax that governments impose on income generated by businesses and
individuals within their jurisdiction. By law, taxpayers must file an income tax return annually to
determine their tax obligations. Income taxes are a source of revenue for governments. It is for
fund public services, pay government obligations, and provide goods for citizens.
There are two kinds of taxes which play an own role in income tax. The most fundamental
classification of taxes is based on who collects the taxes from the tax payer
1. Direct Taxes
2. Indirect Taxes
Direct Taxes: A direct tax is that tax which have to be is paid directly by an individual or an
organization to the government. There are different purpose to pay tax for society welfare,
education purpose, According to the 16th Amendment, Tax law in the United States was written
so that any direct taxes were required to be directly apportioned to the population. For example, a
state with 75 percent of the population in relation to another state would only be required to pay
direct taxes equal to 75 percent of the larger state.
This antiquated verbiage made it so many direct taxes, such as personal income tax, could not be
imposed by the federal government due to apportionment requirements. However, the passing of
the 16th Amendment changed the tax code and allowed for the levying of numerous direct and
indirect taxes.1 Examples for direct taxes are wealth tax, corporation tax, property tax
Indirect Taxes: The tax applied on the manufacture or sale of goods and services. Indirect tax
are does not paid directly to the government it is paid by the intermediary to the government who
then adds the amount of the tax paid to the value of the goods/services and passes on the total
amount to the end user they are not directly applicable on the consumer’s income. Indirect tax is
also known as consumption tax.
Indirect taxes are
1. Sale tax
2. Goods and services tax
3. Value added tax – within state
4. Custom duty tax – outside country
5. Central state tax – outside state

1
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6. Excise duty tax

indirect tax

on goods on service
sold provider

by by service
by dealer
manufacture provider

Existing Indirect tax structure in India are

Within state Outside state Outside country

1. Value added 1. CST 1. Customs

tax
2. Excise + VAT 2. Excise + CST 2. Excise+
Custom

3. Service tax 3. Service tax 3. Service tax

HOSTORY OF GST IN INDIA

 Full Form of GST - Goods and Services Tax
 Notified as constitution Act / Introduce as act – 101st amendment on 8.09.216
 Constitutional Amendment Bill - Constitution 122nd Amendment Bill passed, 2014
 GST first come into mind raised during – In 1999, meeting held between Prime Minister
Atal Bihari Vajpayee and three former RBI governors IG Patel, Bimal Jalan and C
Rangarajan. These are the person who came with an idea of GST
 GST Bill First published in 16th Lok Sabha on - December 19, 2014
 GST Bill Passed in Rajya Sabha - 03 August 2016
 Amended GST Bill was passed by the Lok Sabha on - 8 August 2016
 GST Bill received by President Pranab Mukherjee on - 8 September 2016
  Article - Article 368 of the Constitution
 First state which ratified the GST bill - Assam (on 12 August 2016)
 Last ratified the GST bill – Uttar Pradesh
 Lok Sabha and Rajya Sabha passed all the four key GST Bills (CGST, SGST, IGST,
UTGST) on - 27 March, 2017
 GST came into force across India (except Jammu & Kashmir) on - July 1, 2017
 GST launched in Jammu and Kashmir on - July 8, 2017

GST is introduced by Arun Jaitley Chairman of GST Council is also Arun Jaitley. France is the
World’s first country implemented GST in the year 1954. After implementation of GST in
France there are More than 160 countries have introduce GST system in there country for the
development of the country. Where in India GST idea had formed before 17 years ago. The first
move was taken on GST implementation in India was began on July 17, 2000, under Vajpayee
Government. In 12 August 2016, Assam became the first state to pass GST. On September 23,
2016, GST Network was formed, it is an online network designed to solve the problems and
questions of consumers and businessmen.
Detailed Events:
The detailed events according to various timelines for GST implementation in India is granted
below:
During 1999:
The great idea of Goods and Services Tax (GST) in India given during the meeting held in 1999
between Prime Minister Atal Bihari Vajpayee and his economic advisory panel, three former
RBI governors namely IG Patel, Bimal Jalan and C Rangarajan.
During 2000:
On July 17, 2000, Indian Government under Vajpayee leadership set up the Empowered
Committee (EC) of State Finance Ministers to design a nationwide GST model. This committee
was headed by Asim Dasgupta (Finance Minister of West Bengal) and its members are State
Finance Ministers of Karnataka, Madhya Pradesh, Maharashtra, Punjab, Uttar Pradesh, Gujarat,
Delhi and Meghalaya. This committee which had formulated the design of State VAT (Value
Added Tax) was requested to come up with a roadmap and structure for the GST with the
following objectives:
 To monitor the implementation of uniform floor rates of sales tax by States and Union
Territories;
 To monitor the phasing out of the sales-tax based incentive schemes;
 To decide milestones and methods of States to switch over to VAT; and
 To monitor reforms in the Central Sales Tax system existing in the country.
During 2003:
The Vajpayee led government formed a task force to recommend tax reforms. This task force
was under Vijay Kelkar on the implementation of Fiscal Responsibility and Budget Management
(FRBM) Act, 2013.
During 2004:
Vijay Kelkar recommends GST to replace the existing tax regime. Vajpayee headed BJP-led
NDA government fell.
During 2006:
On 28 February, 2006, under Congress-led UPA government, new Finance Minister P
Chidambaram continued work on the same. He proposed 1 April, 2010 as deadline for GST
implementation throughout India.
During 2007:
on May 10, 2007, a Joint Working Group on GST was formed, which submitted its report to the
Empowered Committee (EC) on November 19, 2007.
During 2008:
On April 2008, Empowered Committee (EC) finalised its view on GST, submitted a report titled
“A model and roadmap for Goods and Services Tax (GST) in India”.
During 2009:
The Empowered Committee (EC) released its First Discussion Paper (FDP) on GST in
November, 2009, based on discussions within and between it and the Central Government.
During 2010:
Finance Minister P Chidambaram had announced that GST will be implemented from April,
2011.
During 2011:
In the Lok Sabha, the 115th Constitution Amendment Bill was introduced for the levy of GST on
all goods and services across India.
During 2012:
In 8th November, 2012, a ‘Committee on GST Design’ was constituted, with members as
officials of the Government of India, State Governments and the Empowered Committee was.
During 2013:
In August 2013, Standing Committee submitted its report on GST. In November 2013, EC
rejected Government’s proposal to include petroleum products under GST regime.
During 2014:
Under the leadership of Narendra Modi, the NDA government was re-elected into power. The
new Finance Minister Arun Jaitley introduced the GST Bill (122th Constitution Amendment) in
the Lok Sabha.
During 2015:
In February 2015, Jaitley set another deadline for GST implementation in India as 1 April 2016.
During 2016:
 On August 3, 2016, Rajya Sabha passed the GST. In 12 August 2016, when Assam
became the first state to pass GST.
 On September 8, 2016, Hon’ble President of India gave his final assent for Constitution
122nd Amendment Bill, 2014. Constitutional 101st Amendment Act came into force
which empowers both the States and Centre to levy this GST.
 On September 23, 2016, GST Network was formed, it is an online network designed to
solve the problems and questions of consumers and businessmen.
During 2017:
 On 16 January, 2017, Jaitley announces 1 July, 2017 as GST rollout deadline.
 On 20 March, 2017, Cabinet approved CGST, IGST and UT GST and Compensation
bills.
 On 27 March, 2017, Lok Sabha and Rajya Sabha pass all the four key GST Bills - Central
GST (CGST), Integrated GST (IGST), State GST (SGST) and Union Territory GST
(UTGST).
 On 18 May, 2017, the GST Council fits over 1,200 goods in one of the four rates of GST
(5%, 12%, 18%, 24%).
 On 19 May, 2017, the GST Council decides on 5, 12, 18 and 28 percent as service tax
slabs.
 On 20 May, 2017, GST Council fixed four GST tax rates in India (5%, 12%, 18%, 24%)
for all goods and services.
 During Midnight of 30 June, 2017 - GST came into force across India except Jammu &
Kashmir.
 During Midnight of 7 July, 2017 - Jammu and Kashmir, the only State missed to adopt
the Goods and Services Tax (GST) on July 1, finally joined the GST regime.
INTRODUCTION OF GOODS AND SERVICES TAX
Goods and Services tax (GST) is a comprehensive value added tax (VAT)2 which supply on
goods and services. Goods and service tax is an biggest indirect tax in India one tax on whole
nation goods and services tax impose in India to remove all taxes which is applied before GST
single tax on goods and services Which make India one unified common market. In India there is
some consequences between the governments so it was proposed to implement dual GST
2
Taxes on the amount by which the value of an article has been increased at each stage of its production or
distribution.
Regime Under which both central and state government have authority to collect taxes. Taxation
equally divided the burden between manufacture and services through a lower tax rate by
increasing the tax base and minimizing exemption. GST is a game changing reform for Indian
social and economy world by developing a common Indian market and reducing the cascading
effect of tax on the cost of goods and services. It will impact the Tax Structure, Tax Incidence,
Tax Computation, Tax Payment, Compliance, Credit Utilization and Reporting leading to a
complete overhaul of the current indirect tax system.
Taxes levied under GST
1. Central goods and services tax (CGST)
2. State goods and services tax ( SGST)
3. Integrated goods and services tax (IGST)

CGST
CGST
IGST

SGST

INPUTE TAX SGST

CREDIT IGST

IGST

IGST SGST

CGST

BENEFITS OF GOODS AND SERVICES TAX

Remove all multiple taxes which is applied in the India for multiple purposes make it one
for whole India to make common market for the benefits in taxes
All goods and service barring a few exceptions, will be brought into GST base. There will be
no longer required distinction between goods and services
 Diminution of cascading/ double taxation
Developing of one common national market to increasing social and economic development
and make simple tax regime
Exemption under central and state government, before GSTG there were fewer exemptions
given by Centre and State Government due to which the final price became different. With the
implementation of GST, There is only one single tax so priced to paid of tax is fixed and one.
Transparency between whole taxation system and no one can cheat everyone have to give tax
Goods and services tax also increases the opportunity to the for jobs there are employment
opportunity.
GOODS AND SERVICES TAX NETWORK (GSTN)
Chair person- Mr. Navin Kumar
"Goods and Services Tax" Network (GSTN) is a non-profit, non- government organisation,
according to section 25 of the companies act 1956 government set up the private company. The
main work of GSTN is to create a website for all GST related person basically to solve the
problem of all person regarding GST. Tax payer can contact them to resolve problem file return
on a single portal GSTN would provide three main services, namely registration, payment and
return to taxpayers. Besides providing these services to the taxpayers, GSTN would be
developing back-end IT modules for 25 States.3
Structure of GSTN
There are 51% of GSTN owned by private company and rest 49% is with government so
according to which both private players and government are involve in this network in which
49% of shares are equally divided to central government and state government the authorize
capital is 10 crore. first Infosys (SEP 2015) company is appointed as Managed Service Provided
of this portal (MSP) and the total cost of the project is around Rs1380 crores for a five years.it is
selected 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers
(GSPs).
Function of GSTN
GSTN is an intermediator between taxpayer and the government the whole process of GSTN is
through online. It has supported about 3 million invoices per month and subsequently returning
filing for 65 to 70lakh taxpayer.
GSTN will be through
 Invoice
 Various return
 Registration
 Payment and refund
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EXEMPTION IN GST
The government has classified certain goods and services as exempt from GST.
Unlike with zero-rated goods and services, business owners cannot claim ITC for the sale of
exempted goods and services.
Here’s a list of all the exemptions:  
Exempted goods: 
Food
Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and
meat (not packaged or processed), tender coconut, jaggery, tea leaves (not processed), coffee
beans (not roasted), seeds, ginger, turmeric, betel leaves, papad, flour, curd, lassi, buttermilk,
milk, and aquatic feeds, and supplements.  
Raw materials
Raw silk, silk waste, wool (not processed), khadi fabric, cotton used for khadi yarn, raw jute
fiber, firewood, charcoal, and handloom fabrics.  
Tools/Instruments
Hearing aids, hand tools (such as spades and shovels), tools used for agricultural purposes,
handmade musical instruments, and aids and implements used by physically challenged people.  
Miscellaneous
Books, maps, newspapers, journals, non-judicial stamps, postal items, live animals (except
horses), beehives, human blood, semen, bangles, chalk sticks, contraceptives, earthen pots, props
used in pooja (including idols, bindi, kumkum), kites, organic manure, and vaccines.  

Exempted services:
 
Agricultural services
This includes all services related to agriculture except the rearing of horses. Exempt services
include cultivation, harvesting, supply of farm labor, fumigation, packaging, renting or leasing of
machinery for agricultural purposes, warehouse activities, and services by an Agricultural
Produce Marketing Committee or Board that is provided by an agent for the sale or purchase of
agricultural produce.  
Transportation services
  Transportation service by road or bridge on payment of toll; transportation of goods by
road (except when carried out by transportation agency or courier agency).  
 Transportation of goods by inland waterways.  
 Transportation of passengers by air (in the states of Manipur, Meghalaya, Assam,
Arunachal Pradesh, Nagaland, Sikkim, Tripura, and Bagdogra).  
 Transportation by non-AC horse or contract carriages; transportation of agricultural
produce, milk, salt, newspapers, or woodgrains.  
 Transportation of goods where the gross amount charged is less than Rs. 1500.  
 Hiring services provided to any state transport undertaking, including motor vehicles with
a capacity to carry more than 12 passengers; services provided to goods transport
agencies.  
Services provided by the government and diplomatic missionaries
 Services by any foreign diplomatic mission located in India.  
 Services provided by the Reserve Bank of India.  
 Services by the Government or any local authority except the following services:  
o Services by the Department of Posts via speed post, express parcel post, life
insurance, and agency services provided to any individual other than the
government.  
o Services related to an aircraft/vessel within or beyond the boundaries of a port or
airport.  
o Transportation of goods or passengers.  
o Any other service, except those that come under (a) and (b), that is provided to
business entities.  
 Services provided to diplomats, including the United Nations.  
 Life insurance services provided under the National Pension System; life insurance
provided by the Army, Naval and Air Force Groups.    
Judicial services
 Services provided by an arbitral tribunal (i.e., services provided by the court or a judge)
to any individual other than a business entity or to a business entity with a turnover up to
Rs. 20 lakhs (Rs. 10 lakhs for special category states) in the preceding financial year.  
 Services provided by a partnership firm of advocate(s) to: an advocate or partnership firm
of advocates, any individual that is not a business entity, or a business entity with
 a turnover up to Rs. 20 lakhs (Rs. 10 lakhs for special category states) in the preceding
financial year.  
 Services provided by a senior advocate (legal services) to any individual other than a
business entity or to a business entity with a turnover up to Rs. 20 lakhs (Rs. 10 lakhs for
special category states) in the preceding financial year.  
Educational services
 Transportation of students and faculty, mid-day meal catering services, admission,
examination services, and security and housekeeping services.  
 Services provided by Indian Institutes of Management (except the Executive
Development Programme).  
Medical services
 Services provided by a veterinary clinic; health-care services provided by clinics or
paramedics.  
 Services provided by ambulances, charities, and organizations facilitating religious
pilgrimage.  
Services provided by organizers
 Services provided by organizers for business exhibitions held outside India.  
 Services provided by tour operators to foreign tourists (this includes tours that are
conducted completely outside India).  
Miscellaneous  services
 Transmission or distribution of electricity by authorized personnel.
 Services provided by recognized sports bodies.  
 Services provided by journalists, Press Trust of India, or United News of India. This
includes the collection and provision of news.  
 Services provided by slaughterhouses.  
 Services provided by libraries.  
 Services provided for public conveniences, such as washrooms, lavatories,
urinals, and toilets.  
 Services provided for conducting religious ceremonies, including renting the premises of
any religious place.  
New exemptions that have been added:
 
 Services provided by the GSTN to the Central government, State government, and Union
Territories.  
 Services related to renting property for residential purposes and renting rooms with
charges less than Rs. 1000 per day.  
 Admission to circuses, theatrical performances, award ceremonies, sport events (other
than recognized sport events), and admission to recognized sport events which charge
less than Rs. 250/- per person for registration. This also includes admission services for
museums, national parks, wildlife sanctuaries, zoos, etc.