GST
oods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and Twenty Second Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST is governed by GST Council and its Chairman is Union Finance Minister of India - Arun Jaitley.
GST is expected to be applicable from 1 July 2017.[1]
History
Effects
The tax rate under GST may be nominal or zero rated for the time its charged. It has been proposed to insulate the revenues of the States from the impact of GST, with the expectation that in due course, GST will be levied on petroleum and petroleum products. The central government has assured states of compensation for any revenue losses incurred by them from the date of introduction of GST for a period of five years.[7]
Legislation
The goods and services tax (GST) council chaired by finance minister Arun Jaitley has urged states to approve state GST laws by the end of May to smoothen the roll-out of the historic tax reform by its target date of 1 July.[8] As India is a federal republic, GST would be implemented concurrently by the central governments.[9] A 21-member select committee was formed to look into the proposed GST law.[10] Section 9 is the charging section for CGST (Central Goods and Services Tax Act, 2017), which gives power to central government to levy tax on intra state taxable supply. [11] There will be no GST on the sale and purchase of securities. That will continue to be governed by Securities Transaction Tax (STT).[12]
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