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•It was introduced as Constitution 122nd Amendment Bill on Lok Sabha .GST. 2016. . •It is proposed to be come into force from 1st July 2017.An Overview •GST is an indirect tax which was approved by Parliament as the Constitution ( One Hundred and First Amendment) Act.

excise duty.Goods and Services Tax • It will Subsume various Indirect taxes of Centre and States like service tax.luxury and entertainment levies. . VAT leading to a single system of taxation. entry tax .

but unlike the Indian VAT system. In many countries. Since then. these countries have a single VAT tax which fulfills the same purpose as GST. 159 other countries have adopted the GST Law in some form or other. GST Law in India – A Detailed History • GST is not a new phenomenon. . It was first implemented in France in 1954. let us look back at the how and when of the Goods and Services Tax and its history in the nation. the discussion on GST Law was flagged off in the year 2000. VAT is the substitute for GST. and since then many countries have implemented this unified taxation system to become part of a global whole. when the then Prime Minister Atal Bihari Vajpayee brought the issue to the table. • In India. • France was the world’s first country to implement GST Law in the year 1954. Now that India is adopting this new tax regime.

• In April 2008. .2009. 2006). titled A Model and Road Map for GST in India including broad suggestions about the structure and design of GST.2010 was raised in the Budget Spech for the financial year 2006-2007 (Chidmbram. the EC (Empowered Committee) had put forward a report. • The EC delivered its First Discussion Paper on GST in India on the 10th of November .• A plan bring in a national level –GST by April1.

unified GST would have been be a preferred option. in parallel. with a Central Goods and Services Tax (CGST) and States Goods and Services Tax (SGST) being levied. in keeping with our federal structure a concurrent dual GST model has been envisaged.Dual GST Model While a single. . on the taxable value of every transaction through the supply chain.

RATE OF GST ACROSS THE WORLD COUNTRY RATE OF GST AUSTRALIA 10% FINLAND 22% CANADA 6% GERMANY 19% CHINA 17% SINGAPORE 7% NEW ZEALAND 22% .

5%. In addition a cess of 15% or other rates on top of 28% GST applies on few items like aerated drinks.25% on rough precious and semi- precious stones and 3% on gold. 12%.INDIA GST slabs are pegged at 1. . 4. 18% 5. GST TAX STRUCTURE . 28% There is a special rate of 0. 0% 2. luxury cars and tobacco products. 3.

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GSTIN Number Format • Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 13/15 digits. • This would bring the GST PAN-linked system in line with the prevailing • PAN-based system for Income tax. • facilitating data exchange and taxpayment .

. • GST will promote a common or faultless Indian Market. RATIONALE BEHIND TOWARD GST • No standardized assessment rates over states. • Division of Fiscal Powers.

• The organizations whose annual income is more than Rs.5 crores will have to adopt the framework of GST. .1. GST and Small Business Enterprises. 1. • Whose annual income is below RS.5 crores would be exempted.

CGST Taxes to be Subsumed .

. GST. • collect the tax from their customer.How It Works • Dealers will charge GST on the price of goods and services. and deduct the tax already paid.

. MERITS • Reduce number of Indirect Tax. • Uniform rates. • Digital Process. • Less corruption. • One tax One Nation. • Boon For SME.

DEMERITS • Costlier service. . • Complexity. • Unstable Economy. • Lack of Knowledge. • Multiple State Registration.

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