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KNOW ALL ABOUT GST FOR SSC EXAMS 2017

Know All about GST for SSC exams 2017 – Get details of time line of GST, Benefits of GST, impact of GST on various goods and services, complete details.

Know All about GST for SSC exams 2017

Know All about GST for SSC exams 2017 – Goods and Services Tax (GST) is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India. GST would replace respective taxes levied by the central and state governments.

It is an indirect tax for the whole country and can be identified as “One Nation One tax” to make India a unified market. It is a single tax on supply of Goods and services in its entire product cycle or life cycle I.e from manufacturer to consumer. It is calculated only in the “Value Addition” at any stage of goods and services. The final consumer will pay only his part of the tax and not the the entire supply chain. Also GST aims to eliminate too many supplementary taxes in order to regularize the prices of the goods.

Benefits of GST : Know All about GST for SSC exams 2017

Easy Compliance : It makes income tax compliance simpler, easy and transparent

Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country. The main goal of GST is to make it tax neutral while doing business irrespective of the place of doing business. Minimal cascading of taxes. GST aims to give improved competitiveness for trade and industry. Uniformity of Tax rates to reduce compliance costs.

Better controls on tax leakage and higher revenue efficiency to decrease the cost of collection of tax revenues.

For the consumer this is a relief in the overall tax burden and this prevents leakages in every stage of the supply chain and the tax burden on several commodities will come down. There is only one single tax from the manufacturer to the consumer that leads to transperancy of the taxes paid to the final consumer.

Which of the following taxes are subsumed?

Central Level: Know All about GST for SSC exams 2017

At the Central level, the following taxes are being subsumed: a. Central Excise Duty, b. Additional Excise Duty, c. Service Tax, d. Additional Customs Duty commonly known as Countervailing Duty, and e. Special Additional Duty of Customs.

State Level: Know All about GST for SSC exams 2017

At the State level, the following taxes are being subsumed: a. Subsuming of State Value Added Tax/Sales Tax, b. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), c. Octroi and Entry tax, d. Purchase Tax, 4 e. Luxury tax, and f. Taxes on lottery, betting and gambling.

The Timeline of events that led to GST?

GST is being introduced in the country after a 13 year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major milestones on the proposal for introduction of GST in India is as follows:

  1. In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle.
  2. A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.
  3. Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC)
  4. Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.
  5. In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted in September, 2009.
  6. In order to amend the Constitution to enable introduction of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on Finance of the Parliament for examination and report.
  7. Meanwhile, in pursuance of the decision taken in a meeting between the Union Finance Minister and the Empowered Committee of State Finance Ministers on 8th November, 2012, a ‘Committee on GST Design’, consisting of the officials of the Government of India, State Governments and the Empowered Committee was constituted.
  8. This Committee did a detailed discussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC recommended certain changes in the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.
  9. The Empowered Committee in the Bhubaneswar meeting also decided to constitute three committees of officers to discuss and report on various aspects of GST as follows:-
  10. Committee on Place of Supply Rules and Revenue Neutral Rates;
  11. Committee on dual control, threshold and exemptions; (c) Committee on IGST and GST on imports.
  12. The Parliamentary Standing Committee submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the Empowered Committee and the recommendations of the Committee were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.
  13. Parliamentary Standing Committee were examined in the Ministry in consultation with the Legislative Department. Most of the recommendations made by the Empowered Committee and the Parliamentary Standing Committee were accepted and the draft Amendment Bill was suitably revised.
  14. The final draft Constitutional Amendment Bill incorporating the above stated changes were sent to the Empowered Committee for consideration in September 2013.
  15. The EC once again made certain recommendations on the Bill after its meeting in Shillong in November 2013. Certain recommendations of the Empowered Committee were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.
  16. The 115th Constitutional (Amendment) Bill, 2011, for the introduction of GST introduced in the Lok Sabha in March 2011 lapsed with the dissolution of the 15th Lok Sabha.
  17. In June 2014, the draft Constitution Amendment Bill was sent to the Empowered Committee after approval of the new Government.
  18. Based on a broad consensus reached with the Empowered Committee on the contours of the Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country. The Bill was introduced in the Lok Sabha on 19.12.2014, and was passed by the Lok Sabha on 06.05.2015. It was then referred to the Select Committee of Rajya Sabha, which submitted its report on 22.07.2015.

Stay tuned for more updates on Know All about GST for SSC exams 2017!

simanchal mandal 1 Months ago
what is impact of GST on common people.Is there any difference between previous MRP. and GST MRP. Kidly discuss About it.
Knowledge Expert 1 Months ago
Hi, We completed it. Thanks Team Toprankers
NAMI 1 Months ago
12th point is incomplete.

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