GST Definition, Objective, Framework, Action Plan & GST Scope
A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. Hi Friends here we are providing Complete details for Goods and Service Tax like – Historical Background of GST, Definition of GST, Objective of GST, Regulatory Framework of GST, Action Plan of GST Council, Scope of GST etc. Recently we provide complete details regarding “Whether GST is ready to move on by July 2017?” Now you can scroll down below and check more details for “GST Definition, Objective, Framework, Action Plan & Scope”
GST Definition, Objective, Framework, Action Plan & Scope
Historical background of GST
GST was first recommended by Kelkar Task Force on implementation of Fiscal Reforms and Budget Management Act 2004 but the First Discussion Paper on Goods and Services Tax in India was presented by the Empowered Committee of State Finance Ministers dtd.10th Nov.10th, 2009.
In 2011, the Constitution (115th Amendment) Bill, 2011 was introduced in Parliament to enable the levy of GST. However, the Bill lapsed with the dissolution of the 15th Lok Sabha.
Subsequently, in December 2014, the Constitution (122nd Amendment) Bill, 2014 was introduced in Lok Sabha. The Bill was passed by Lok Sabha in May 2015 and referred to a Select Committee of Rajya Sabha for examination.
GST Bill Passed in Rajya Sabha & Lock Sabha
When GST is Applicable – Modi Government Want to applicable GST Bill From 1st July 2017, Due to Some Legal Problems GST Bill is not applicable before 1st July 2017.
Definition of GST
“GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set of benefits from the producer’s / service provider’s point up to the retailers level where only the final consumer should bear the tax.”
Objectives of GST
- One Country – One Tax
- Consumption based tax instead of Manufacturing
- Uniform GST Registration, payment and Input tax Credit
- To eliminate the cascading effect of Indirect taxes on single transaction
- Subsume all indirect taxes at Centre and State Level under
- Reduce tax evasion and corruption
- Increase productivity
- Increase Tax to GDP Ratio and revenue surplus
- Increase Compliance
- Reducing economic distortions
Regulatory Framework of GST
- A new set up by Government of India named as ‘GST Council’.
- The GST Council consists of
- (a)the Union Finance Minister (as Chairman),
- (b) the Union Minister of State in charge of Revenue or Finance, and
- (c) the Minister in charge of Finance or Taxation or any other Minister, nominated by each state government.
- All decisions of the GST Council will be made by three fourth majority of the votes cast; the centre shall have one-third of the votes cast, and the states together shall have two-third of the votes cast.
Action Plan of GST Council
- List number of Taxes, cesses, and surcharges to be subsumed under GST
- Preparation of list of goods and services subject to, or exempt from GST
- Determination of threshold limit of turnover for application of GST
- Fixation of rates
- Preparation of model GST Laws, principles of levy, apportionment of tax benefits
- Firming up Place of supply Rules
- Recommend on Compensation to states losing on revenue post implementation of GST, subject to maximum time limit of 5 years.
Scope of GST
- All goods and services are covered under GST Regime except Alcoholic liquor for Human Consumption,
- Tobacco Products subject to levy of GST and Centre may also levy excise duty
- GST Council yet to decide the incidence and levy of GST on following;
- a)Crude Petroleum
- b)High Speed Diesel (HSD)
- c)Motor Spirit (Petrol)
- d)Natural Gas
- e)Aviation Turbine Fuel
If you have any query regarding “GST Definition, Objective, Framework, Action Plan & GST Scope” then please tell us via below comment box…