Study Of GST In Indian Context
GST (Goods and Services tax) is an indirect tax levied on the sale and purchase of goods and services.GST is replacement of various kinds of indirect taxes in India. The taxation system of India is very old and cascading so there was a severe need of indirect tax reform. Finance Minister Manmohan Singh and Prime Minister P.V. Narsingh Rao introduced VAT (value added tax) which was a tax on every stage of value addition. In 2002 the then prime minister Atal Bihari Vajpayee constituted Vijay Kelkar committee for tax reform which recommended to abolish all indirect taxes introducing by ONE NATION ONE TAX named GST. The 100th constitutional amendment bill for GST was passed in the parliament on 29th march 2017and came in to effect since 1st July 2017.GST included five tax slabs for tax collection these are 5%,12%,14%,18%and 28%.GST replaced various indirect taxes like sales tax,VAT,excise duty,custom duty,service tax,surcharges and octroi.The implementation of GST is administered by both central and state government in two parts Transactions made within a single state are levied with central GST(CGST) by the central government and state GST (SGST) by state government. For interstate transactions and imported goods or services an integrated GST (IGST) is levied by the central government.