GOODS To introduce the meaning, features, importance

  

GOODS
AND SERVICE TAX

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MAYA T A

6th semester, B COM CA, KR’s
SN College.

E mail:     [email protected]

 

 

 

 ABSTRACT

                  Goods and service tax is the
tax introduced by the Government of India to support and enhance the economic
growth of our nation. GST is an indirect tax which was passed in the parliament
on 29th march 2017. The act comes in to effect on 1st July 2017. This replaced
multiple taxes in India. GST has replaced almost 17 of the existing state and
central excise duty, customs duty, and service tax etc. The tax rate, rules and
regulations are governed by the Goods and Service Tax Council which comprises
finance minister of centre and state Governments. GST Council has decided to
fix a four-tier rate structure. The four bands of tax rates they are, 5%, 12%,
18% and 28%. This apart, another category of tax between 40% and 65% will be
imposed on luxury goods. This paper is prepared through analysing data from
different sources. I would like to discuss the needs and importance of GST in
the current situation.                                                   

Key words: GST Council, Tax structure, VAT

 

OBJECTIVES

 

The
main objective of this paper is to provide a general awareness to the students
regarding GST and its features.

                                    

•           To introduce the meaning, features,
importance of GST

•           To study the impact of GST to the
current tax structure.

•           To discuss GST structure and tax
rates.

 

BENEFITS
OF GOODS AND SERVICE TAX

 

•           One country has one tax.

•           It increased uniformity in the tax
structure of our country.

•           Increase export.

•           It reduces economic distractions in
our economy.

•           Reduce tax evasions and corruption.

•           Increase productivity.

•           It is consumption based tax instead
of production.

•           Increase tax contribution to GDP.

•           Transparency in taxation system.

•           Increase in employment opportunity.

                                                                                 

STATEMENT
OF THE PROBLEM

 The single GST replaced several former taxes
and levies which included: central excise duty, service tax, additional customs
duty, surcharges, state-level value added tax and   Octroi. GST is levied on all transactions
such as sale, transfer, purchase, barter, lease, or import of goods and
services. The GST is imposed at variable rates on variable items. The central
government had proposed to insulate the revenues of the states from the impact
of GST. The Union Government has formally notified the goods and service tax
council, which will decide on the tax rate. The council will be chaired by the
Union Finance Minister Mr. Arun Jaitley. The four bands of tax rates have been
fixed at 5%, 12%, 18%, and 28%.

                                        

SCOPE
OF THE STUDY

 

GST shall cover all goods and
service, except alcoholic liquor for human consumption, for the levy of goods
and services tax.  GST is a major
customer-friendly indirect tax reform. The intention of government is to
increase the revenue without hiking tax rates.

GST is deemed as one of the steps
in making India as a country which has a high-income tax system, comprehensive,
efficient, transparent and business friendly. This study makes an attempt to
provide awareness to the students. 

 

 CONCLUTION

            It can be concluded from the above
discussion that GST will provide relief to producers and consumers by providing
wide and comprehensive coverage of input tax credit set-off. All will pay GST
on every products or services we consume. All indirect taxes levied by the
state and the centre will be merged in to one GST, we would exactly know how
much tax we pay which at present is difficult to understand.

                                    The sellers
or service providers collect the tax from their customer. The success of GST
would rest upon efficiency, equity and simplicity. Efficient formulation of GST
will lead to resources and revenue gain for both centre and state.

It
can be further concluded that GST have a positive impact on Indian sectors and
industry.

       

 

REFERENCEs

 

1.
www.nbc.com.my.gst

2.
Wikipedia

3.
Shodhganga

4.
Prathiyogita darpan

5.
News papers.

           

 

 

 

 

 

 

 

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