Goods and Service (GST), which will subsume the majority of the aberrant
expenses and lead the nation towards one country, one tax, is practically
prepared for rollout for 1 july 2017.
The GST Council on Thursday conceded to the assessment slabs for products, which showed that expense will descend on things of mass utilization and this will bring down expansion and bolster primary concerns of most organizations, particularly those in the customer areas.
GST which is integration of Excise, VAT and CST etc; Manufacturer pays Excise duty to Central Government on the first place on everything he produces, now if he sells his product in the same state where the factory is located then state government charges him with VAT based on the prescribed slab and if the Manufacturer sells his products outside the state where factory is located then he is liable to pay CST to the state where he sells his products. The Central government also Levis service tax on the services prescribed. In this case manufacturer, stockiest, whole seller or retailer and in case of services, service provider pays the tax either to center or state.
Now onwards from 1st of July 2017 GST will be rolled out and consumer has to pay GST , GST council on 18th may 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir announced the tax slabs of various products and services.
Five tax slabs are prescribed 5% , 12%, 18%, 28% and 28 plus cess whereas 0% is also kept and prescribed on products like Khadi .
GST traveled a long journey beginning from year 2000 when empowered committee was formed to initiate discussions , the committee was headed by Asim Dasgupta then Finance minister of West Bengal , later during 2002 – 2004 Kelkar Task Force suggested comprehensive GST including service tax .
In 2006 Budget speech , GST Proposal was introduced in Parliament and planed to rolled out from year 2010 , then in may 2007 empowered committee of all state finance ministers started working on the roadmap later in April 2008 this empowered committee submitted its report and in 2009 first discussion paper was released on A model and roadmap of GST in India .
In Feb 2010 GST was announced by then Finance Minister in Budget speech and April 2011 announced as a rolling out date later 115th amendment bill introduced in Loksabha and standing committee was formed which submitted its report in 2013 and in Nov 2013 Empowered committee of State Finance ministers excluded the petroleum products from GST.
In 2014 122nd constitution amendment bill was passed in Loksabha and the same got passed in Rajyashabha on 3rd August 2016 . Finally on 8th September 2016 President finally approved the 122nd constitutional Amendment bill. In 2017 GST council cleared state and union territory GST Law .