Simple persuasive essay on GST
Answers
Goods & Services Tax, is a holistic indirect tax on the sale, consumption and manufacturing of goods and services in its entire product cycle i.e. from manufacturer to the consumer, throughout India.
GST, as an indirect tax for the whole country would make India a unified market by replacing taxes levied by the central & state government respectively, truly on the lines of ‘One Nation One Tax’. As a destination-based taxation system, it has been ratified by the 101st Constitutional Amendment Act. GST will be calculated only in the ‘value addition’ stage of a good or service. The end consumer will pay only their part of the tax and not the entire supply chain, which was the case earlier. A GST council has been provisioned - to be chaired by the Finance Minister of India – to decide upon any matter related to GST.
The GST Council is the first federal institution of India and will approve all decisions pertaining to taxation in India. It comprises all 29 states, Pondicherry, Delhi and the centre with the states having 2/3rd voting rights and the centre having the rest.
For GST, the highest tax slab is fixed at 40% with other slabs at 0%, 5%, 12%, 18% and 28%.
GST incorporates the following taxes earlier levied at the center and state level.
State Level: