MAIN FEATURE
An Overview of Goods & Service Tax
India Inc. is headed for Goods & Service Tax (GST), arguably the biggest tax reform since Independence.
Arnab Mondal arnab@martupdate.com
What is GST? GST is a single tax regime for all goods and services
from all the major parties
representatives of the State
in the world follow the GST
in the Rajya Sabha recently.
and Central Governments will
system in their tax systems.
The GST issue was also voted
look at every aspect of GST
for in the Lok Sabha and the
and will finally form a draft
Constitutional Amendment Bill
GST Law. The Government also
regarding GST was approved.
plans to launch GST software
in a country. Currently,
Soon after, an Empowered
the Central and State
Committee was formed with
Governments levy different
the Finance Ministers of all
taxes on a single product or
the States to devise the role
This is certainly a big step
service respectively. The aim
and introduction of GST in
towards the reform.
of GST is at putting an end
the Indian economy. Mr.
to the multi tax system with
Ashim Dasgupta, then Finance
one single tax regime.
Minister of West Bengal, was
For instance, the Central Government levies Service Tax, Production Cess and State Governments levy Value Added Tax (VAT), Sales Tax, Luxury Tax etc. Mr. Atal Bihari Vajpayee first raised the need for a single tax system, namely GST, during his tenure as the Prime Minister back in 2000.
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All the developed economies
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appointed the Chairman of this committee. Even, the UPA Government tried to introduce GST during its tenure. Now the Modi Government has once again taken up the matter. Mr. Amit Mitra, Finance Minister, West Bengal is the current Chairman of the Committee. The Government has crossed the biggest hurdle en route to GST. It received support
soon and mandate the training of State and Central Government employees with
Road Ahead
GST by December this year. A
However, there are miles
issued for the GST Law by the
before the GST comes in the
March 2017.
form of law. Firstly, over 50 per cent States (at least 16 States) have to pass the GST Bill in their respective assemblies within 30 days from the Bill passing in the Lok Sabha. Assam is the first State to have passed the GST Bill in the assembly. Then the President will form a GST Council where the
notification is expected to be
And only after all these steps the main GST Bill will be tabled for approval in the Loka Sabha to turn it into GST Law. The Government plans to roll out GST Law with effect from 1 April 2017. Rate of GST Various segments are
August 2016