GOODS AND SERVICE TAX (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     2nd December 2023        
Samadhaan

Context: Recently, Goods and Services Tax (GST) collections reached ₹1.68 trillion in November, boosted by festive demand that bolstered sales, although this figure was lower than the ₹1.72 trillion recorded in October.


Goods and Services Tax (GST)

  • About: It is a comprehensive, multi-stage, destination-based, that is levied on every value addition, focusing on the consumption of goods and Services.

oDestination tax refers to a tax collected by the authority with jurisdiction over the place of consumption, also known as the place of supply.

  • Introduced by: The Constitution (101st Amendment) Act, 2016, introduced by 122nd Amendment Bill.
  • Came into effect: From 1st July 2017.
  • Origin: GST was first implemented as a tax regime in 1954 in France and later adopted by several countries, including Australia, Cnanada, UK, Spain etc.
  • In India: It came into consideration after a committee headed by Vijay L. Kelkar concluded that GST could help improve tax structure in India.
  • GST Slabs: 5%, 12%, 18% and 28%.
  • GST Tax Structure: Central GST (CGST), State GST (SGST), Integrated GST (IGST) and Union Territory GST (UTGST).



Samadhaan