GST help in improving India’s ranking in ease of

GST
ON COMMERCE GOODS & SERVICE                                                                                       

                                By                                                                                
            

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                      VISMAYA. N

                      4thsem
BA ECONOMICS      

KR’s Sree Narayana College,
Thozuvanoor, Valanchery             

                                     E-mail:[email protected]

Abstract

Good
and service bill was passed on 3rd august 2016 the tax came into
effect from July 1, 2017 through the implementation of one hundred and first
amendment by the government of India the tax replaced existing multiple
cascading taxes levied by the central and state governments. Before the GST
there are different kind of taxes are applicable in the goods and service, the
tax rate on the same goods is different in different states. Now after the GST
only single tax for single nation is applicable and tax rate will be same.
France is the1stcountry to implement GST in 1954 now 160 countries
adopted. GST only three type of taxes will be charged in whole country and the
taxes are as CGST, SGST this paper is essentially an approach to
evaluate of GST on Indian economy. This paper mainly focusing on the impact of
GST on trade and commerce. This is  
approach implementation of GST will help in improving India’s ranking in
ease of doing business which, in turn, will help foreign investors to bring
more and more money in two the country.                        

 Keyword: the GST, after the GST, slabs, SGST,
IGST, CGST ,                                                          
implementation

 

 

GST ON COMMERCE
GOODS AND SERVICE

 

Goods and service tax (GST)
is an indirect tax throughout India to replace taxes levied (assessable) by the
central and state

The GST
has already been introduced in nearly 160 countries France was the first to
introduce GST in the year 1954 GST(goods and service tax) was launched in India
on July 1, 2017 it was indeed a historic occasion and paradigm shift as India
moved towards `one nation, one tax, one market.’

GST will
be levied on all transaction such as sale, transfer, purchase, barter lease, or
import of goods and/or service. India will adopt a dual GST model meaning that
taxation is administered by both the union and state Government. Transaction
made within a single state will be with central GST (CGST) by the central
government and state GST (SGST) by the government that state. For interstate
transaction and imported goods or service, an integrated GST (IGST) is levied
by the central government

To check
the relationship between GST on commerce. The waves of awareness have swept
through the country. GST: game changer for Indian economy. What is might not
know that what has created the need for ushering this mammoth reform in the
country

GST is a
simplified tax structure applied on both goods and services it is a value –added
tax levied at all point in the supply chain with credit allowed for any tax
paid on input acquired for use in making the supply. Would be applicable on
supply of goods or service as against the prevailing system of tax on the
manufacture of goods or on sale of goods or on provision of service is would be
a destination based tax as against the existing system of origin based tax.

The
territorial spread of GST is whole of the country including the state of Jammu
and Kashmir.

GST is
applicable on “supply” of good or service as against the present concept of tax
on the manufacture of goods or on sale of goods or on provision of service.

It is
based on the principle of destination based consumption taxation as against the
present principle of origin based taxation.

Import of
goods is treated as inter-state supplies and would be subject to IGST in
addition to the applicable customs duties.

Import of
services is treated as inter-state supplies and would be subject to IGST on
reverse charge basis.

CGST,
SGST/UTGST is levied at rates mutually agreed upon by the center and
the states under the aegis of the GST council (GSTC)

There are
four tax slabs namely 5%, 12%, 18%, 28% for all goods or service. Precious
metals would be subject to tax @3% whereas rough precious stones attracts tax @
0.25% some specified goods or service have been exempted.

GST
covers the entire gamut of goods and services except alcohol for human
consumption which is constitutionally out of GST besides, five petroleum
product (crude, petrol, diesel, ATF and natural gas) are of GST at present and
can be brought into GST fold on recommendation of GST council

Export
and supplies to SEZ are zero-rated

Credit of
CGST paid on inputs may be used only for paying CGST on the output and the
credit of SGST/UTGST paid on input may be used only for paying SGST/UTGST. In
other words, the two streams of input tax credit (ITC) cannot be cross
utilized, except in specified circumstances of inter-state supplies for payment
of IGST.

Electronic
filing of return has to be done by different class of persons at different
cut-off

An
anti-profiteering clause has been provided in order to ensure that business passes
on the benefit of reduced tax incidence on goods or services or both to the
consumers.

Elaborate
transition provision have been provided for smooth transition of existing
taxpayers to GST regime

Before
the GST there are different kind of taxes are applicable in the goods and
service. The tax rate on the same goods is different in different states. Now
after the GST only single tax for single nation is applicable and tax rate will
be same.

Will help
to create a unified common national market for India, giving a boost to foreign
investment and “make in India” will mitigate cascading of taxes as input tax
credit will be available across goods& service at every stage of supply;
harmonization of laws, procedures and rate of tax; ease of doing business:
simple tax regime with fewer exemption; reduction in the multiplicity of taxes
that are at present governing our indirect tax system leading to simplification
and uniformity;

Features:
GST will be implemented during the middle of the year, the tentative GST
implementation date is 1stJuly 2017 so, for the fiscal year, 2017-18
business will follow the old tax structure for the first 3 months, and GST for
the rest of the time. Is impossible to cross over from one tax structure to
other.

Change in
business software. Petroleum products are not part of GST yet. Petroleum
products are being kept outside the scope of GST as of now. States will levy
their own taxes on this sector

Conclusion

Looking
at GST from a myopic view point only shades of indirect tax reform will be
visible. But if this transformation reform it can be seen as a business change
,a social regeneration, a revolution that will reenergize the sagging wheels of
our economic growth ,a booster dose for the immunity of our economy for the
vagaries of world developments and least a future where the head will be held
high and minds will be free

Reference

Yojana
august 2017-gst dawn of a new era-upender gupta etc.Yojana November-2016-GST:
game changer for Indian economy-renjeet mehta

https://www.youtube.com/watch?v=gnvgr4c-e81-gst:2017:introduction-youtube

https://www.quora.com/what-is-dual-gst-goods and service-tax-in India

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