One India, One Market Under GST
Tax is a huge source of revenue for our state and central governments, but owing to the complex nature of our current tax system, it’s not a surprise that many people do not understand how it works. The Goods and Services Bill has been discussed by different parliamentary committees since 2006. It came into news again when the Lok Sabha finally passed the bill and Finance Minister Arun Jaitley decided to implement the Goods and Services Tax (GST) from the next financial year. As of now, it is being touted as one of the biggest taxation reforms in India.
What is GST?
The Goods and Services Tax is a comprehensive tax system levied on goods and services at a national level. This system will collect taxes at the consumption-level where the consumers buy the goods and services from a retailer or a service provider, and will replace all different kinds of indirect taxes with the one single tax system. Almost 150 countries have a GST in place, and the World Bank has been urging India to implement it for a long time now.