When you wake up on the morning of July 1, your eye will open in new tax system, Goods and Services Tax (GST). For everyone, from the consumer to the business, the new structure of indirect tax has begun to work. President Pranab Mukherjee and Prime Minister Narendra Modi will inaugurate this from the Central Hall of Parliament today. This event of GST launch is also historic as it is for the first time since Independence that a joint session of the Parliament has been called for the declaration of any law. The Modi government started the tax reform fast and it started with indirect tax. The government also claims that the tax burden will be reduced even on the consumer. The businessman will get rid of tax junk.
Business: Business will be easier. The traders will get relief from filling complex and many types of tax returns. Economy: There will be negative impact on the economy of the shot term, although the economy will grow faster in the long term.
Consumer: At the beginning, prices are a bit difficult to grow, but once the GST comes into effect from the complete tahr prices will automatically decrease.
Inflation: Inflation in the short term may increase, but it will decrease in the long term.
Is this GST incomplete?
What is the Modi government that is going to implement GST, is it completely complete? The government is going to fulfill the plans? There are doubts on many points about this.
Alcohol and petrol out of bounds – One Nation, One Tax, One Market, will be made only when prices like Alcohol and Petrol-Diesel are uniform in the whole country. But they are out of GST.
3% GST on Gold- GST Council has also kept 3 percent GST on Gold. Gold is not a necessary thing to use. Gold has been used extensively in blackmoney consumption.
Journey of GST – The foundation of GST was laid 18 years ago by then Prime Minister Atal Bihari Vajpayee in 1999. Vajpayee’s Economic Advisory Board had advised to set up a new indirect tax structure. At that time, his Economic Advisory panel included three former RBI governor IG Patel, Bimal Jalan and C. Rangarajan. West Bengal’s Finance Minister Asim Das Gupta was given the responsibility to draft the GST. After the departure of the Vajpayee government in 2004, Manmohan Singh’s government was formed.
This process was further extended under the UPA-1 rule. In 2005, the Kelkar committee recommended the implementation of GST on the recommendations of the 12th Finance Commission. P. Chidambaram expressed his intention to implement GST while presenting his next budget. In February 2006, Chidambaram fixed the limit of April 1, 2010 to implement GST.In 2009, then Finance Minister Pranab Mukherjee informed the Asom Dasgupta Committee about the basic structure of the proposed GST. Pranab also mentioned his deadline in April 2010 itself. Now after passing the bill, Parliament has to approve Pranab Mukherjee as the President. The BJP is busy in trying to pass GST today, BJP also opposed the basic structure of GST introduced by Pranab Mukherjee.In 2011, the UPA government introduced the bill to amend the Constitution to introduce GST, but many opposition parties, including BJP, opposed it, after which it was sent to the Standing Committee, the committee’s chairman was Yashwant Sinha.
GST means Goods and Services Tax. This will be implemented in lieu of more than 20 indirect tax of the Center and the States. This is a tax that will apply to the manufacturing, sale and use of any goods or services across the country. GST Council has fixed the tax rate for the goods and services in four slabs 5%, 12%, 18% and 28%. Ces will also look at luxury and expensive items.Taxes on excise duty, Central Sales Tax (CST), State Sales Tax, VAT, entry tax, lottery tax, stamp duty, telecom license fees, turnover tax, electricity usage or sale and transportation of goods will be lost.
Four types of GST –According to the proposed law, a total of 4 types of GST will work in the country. – This includes CGST, SGST, IGST and UGGT respectively.At SGST, where the state governments will make a tax claim, CGST will be the claim of the central government.On the IGST, both the Central and State Governments will be sued, UGST will be called upon to Union Territories.
In the Modi government GST- Work started on GST fast when Narendra Modi came to power in 2014. GST got approval from the Standing Committee.Arun Jaitley presented GST bill in Parliament only after 7 months of formation of the government. On 1 April 2016, the deadlines were enforced, but the Congress continued to oppose it. In spite of this, the bill was passed in the Lok Sabha in May 2015, after which the GST bill was sent to the Rajya Sabha Standing Committee on the opposition to Congress. There was a debate in power and opposition for the last one year, after which the amendment bill was passed in August 2016 with the consent of both sides.