Goods and Services Tax (GST) Day
The Goods and Services Tax (GST) Day is observed annually on July 1, in India.
- GST Day is observed to commemorate the implementation of Goods and Services Tax (GST).
- GST Day was first observed on July 1, 2018 marking the one-year anniversary of implementation of the new tax regime.
When was GST launched?
- GST was launched on intervening night of June 30 and July 1, 2017, in a ceremony held in the central hall of Parliament.
- GST had replaced the old indirect tax regime in India.
- It was introduced with the idea of “One Nation- One Market- One Tax”.
- Year 2022 marks the fifth anniversary of GST.
What is GST?
GST is an indirect, multi-stage, consumption-based tax system. It subsumes several domestic indirect taxes like service tax, purchase tax, value-added tax, excise duty, and others under one head. However, items including petroleum, liquor, and stamp duty have not been added to GST. These items follow the old tax system.
Idea to launch a new tax regime came into existence, when a committee was set up in 2002 to draft GST laws. This committee submitted its report in 2004. Later in 2006, finance minister proposed to introduce GST on April 1, 2010. It took more than 17 years for GST laws to come into force.
Three taxes under GST
There are three taxes application under the GST namely, CGST, SGST, and IGST. Central government collects CGST on intra-state sale on the other hand, SGST is collected by state government on intra-state sale. Central government collects IGST on an inter-state sale.
Tax Slabs under GST
Currently, there are four tax slabs under GST viz. 5 %, 12 %, 18 %, and 28 %.
Objectives of GST laws
Main objective of GST laws is to eliminate the cascading effect of taxes. It is also aimed at expanding the base of taxpayer in India by simplifying taxation process.
Month: Current Affairs - July, 2022
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