How will GST work in India?
Answers
Answer:
The rates of GST are 28%, 18%, 12%, and 5%. It is levy on manufacture, sale and consumption of goods and services at the national level. It will replace all indirect tax levied on goods and services by the Indian state and Central governments. The components of GST are CGST , SGST, IGST and UTGST.
Answer:
Explanation:
India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) has completed 1 year. A comprehensive dual GST was introduced in India from 1 July 2017.
The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2006-07. The talks of ushering in GST took concrete shape with the introduction of Constitution (122nd Amendment) Bill, 2014. The Bill was passed by the Parliament on 8 August 2016. This was followed by the ratification of the Bill by more than 15 states. On 12 April 2017, the Central Government enacted four GST bills:
Central GST (CGST) Bill
Integrated GST (IGST) Bill
Union Territory GST (UTGST) Bill
The GST (Compensation to States) Bill
In a short span of time, all the states approved their State GST (SGST) laws. Union territories with legislatures, i.e., Delhi and Puducherry, have adopted the SGST Act and the other 5 union territories without legislatures have adopted the UTGST Act.
The GST Council, a recommendatory body consisting of representatives of Central as well as state governments, has met on several occasions and taken important decisions relating to tax rate structure, exemptions, rules, composition scheme etc. Over the period, the Council has recommended a reduction in the tax rates of various goods and services. It is also considering the various issues faced by trade and industry and endeavoring to simplify the new tax regime and ease compliance.