GST Collection

Context

The Goods and Services Tax (GST) revenue reached a record-breaking Rs 2.37 lakh crore in April, showing a 12.6 per cent year-on-year increase, according to official government statistics.

What is GST?

The Goods and Services Tax (GST) is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc.
The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
The 101st Constitution Amendment Act of 2016introduced the Goods and Services Tax (GST) in India, creating a unified indirect tax system.
GST is levied on the supply of goods and services. It replaced multiple existing taxes (service tax, duties of excise, cess and surcharge, VAT, entertainment tax, etc.) with a single, streamlined tax, applying to the supply of goods and services.
Goods and Services Tax Law in India is acomprehensive, multi-stage, destination-based tax that is levied on every value addition.
After subsuming majority indirect taxes, GST is a single domestic indirect tax law for the entire country.

GST Council

The GST Council is a joint forum of the Centre and the states.
It was set up by the President as per Article 279A (1) of the amended Constitution.
Members:
- The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
- Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.
Functions:
- To “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.
- To decide on various rate slabs of GST.

PYQ

Q. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (2017)

It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

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