GOODS AND SERVICE TAX
Name: MAYA T A
E mail: [email protected]
Course: B COM CA
College: KR’s SN College.
Goods and service tax is the tax
introduced by the Government of India to support and enhance the economic growth
of our nation. GST is an indirect tax which was passed in the parliament on 29th
march 2017. The act comes in to effect on 1st July 2017. This
replaced multiple taxes in India. GST has replaced almost 17 of the existing
state and central excise duty, customs duty, and service tax….etc. The tax
rate, rules and regulations are governed by the Goods and Service Tax Council
which comprises finance minister of centre and state Governments.GST Council
has decided to fix a four-tier rate structure. The four bands of tax rates they
are, 5%, 12%, 18% and 28%. This apart, another category of tax between 40% and
65% will be imposed on luxury goods. This paper is prepared through analyzing
data from different sources. I would like to discuss the needs and importance
of GST in the current situation.
Key words: GST Council, Tax
OBJECTIVES The main objective of this paper is to provide a general awareness to the students regarding GST and its features. • To introduce the meaning, features, importance…..etc of GST• To study the impact of GST to the current tax structure.• To discus GST structure and tax rates. BENEFITS OF GOODS AND SERVICE TAX• One country has one tax.• It increased uniformity in the tax structure of our country.• Increase export.• It reduces economic distractions in our economy.• Reduce tax evasions and corruption.• Increase productivity. • It is consumption based tax instead of production.• Increase tax contribution to GDP.• Transparency in taxation system.• Increase in employment opportunity. 4 STATEMENT OF THE PROBLEM The single GST replaced several former taxes and levies which included: central excise duty, service tax, additional customs duty, surcharges, state-level value added tax and Octroi. GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and services. The GST is imposed at variable rates on variable items. The central government had proposed to insulate the revenues of the states from the impact of GST. The Union Government has formally notified the goods and service tax council, which will decide on the tax rate. The council will be chaired by the Union Finance Minister Mr. Arun Jaitley. The four bands of tax rates have been fixed at 5%, 12%, 18%, and 28%. SCOPE OF THE STUDYGST shall cover all goods and service, except alcoholic liquor for human consumption, for the levy of goods and services tax. GST is a major customer-friendly indirect tax reform. The intention of government is to increase the revenue without hiking tax rates. GST is deemed as one of the steps in making India as a country which has a high income tax system, comprehensive, efficient, transparent and business friendly. This study makes an attempt to provide awareness to the students. CONCLUTION It can be concluded from the above discussion that GST will provide relief to producers and consumers by providing wide and comprehensive coverage of input tax credit set-off. All will pay GST on every products or services we consume. All indirect taxes levied by the state and the centre will be merged in to one GST, we would exactly know how much tax we pay which at present is difficult to understand. The sellers or service providers collect the tax from their customer. The success of GST would rest upon efficiency, equity and simplicity. Efficient formulation of GST will lead to resources and revenue gain for both centre and state.It can be further concluded that GST have a positive impact on Indian sectors and industry. REFERENCE1. www.nbc.com.my.gst2. Wikipedia 3. Shodhganga4. Prathiyogita darpan 5. News papers.