Tuesday 30 August 2016

Why GST ?

Goods and Services Tax will come into the category of indirect taxes. GST is VAT which it will be applied to both goods and services. VAT is currently only applies to objects. After GST sales tax, service tax, excise duty, VAT tax will be removed the entire spectrum. The entire country will be turned into an integrated market.

Central Excise Duty

Additional duty
Special Additional Duty of Customs
Medicinal and Toilet preparation (excise) duty under the 1955 Act
service tax
Additional customs duty
Central surcharge and cess

State tax -

Value Added Tax (VAT) / Sales Tax
Lotrij, betting and tax Gambiling
Entertainment Tax
Central Sales Tax
Oktroy and entry tax
Purchase Tax
Luxury tax
State cess and surcharge

Under the GST tax rate to be fixed to the country has not been fixed yet. Congress demands that this rate should be fixed at 18 percent. This will reduce tax evasion and increase tax collection. It also is believed that after the GST tax structure will be transparent
If you assume the government decides on 18 per cent GST rate will benefit you, because both VAT and Excise will be deleted and you have to pay 18 per cent GST, then most things will be cheaper. Currently you leave certain things up 12.5 percent on other things pay excise duty and VAT at the rate of pay according to their state. This means that roughly 25 to 26 per cent tax you pay. Brbar The GST tax will be reduced and on arrival you will be goods cheaper.
You currently pay 14.5 per cent on services. Such as 1000's mobile bill pay service tax at Rs 145. GST will be 18 per cent after it means that you will have to pay Rs 180 instead of 145. In fact, the food in the restaurants, air tickets, insurance premium etc, all services will be expensive.
GST, states are not unanimous. There are many differences. In many people's minds is the dilemma that if the tax is imposed, it will happen slab. Who will take the decision on the tax. But some people believe that all states would have a tax rate burden on the people, because all the rights applicable GST will be near the center.

The biggest problem in the House to pass the bill for what is to get the support of Congress. Congress demanded that Tamil Nadu, Maharashtra and Gujarat states spent a cent extra tax to be discontinued. The government is expected to grant the demand, but Jayalalithaa's AIADMK is against removing it.

Congress demands that the GST rate of 18 per cent stipulated in the law that the government wants to retain the right to determine the rate.
 -GST Council Chairman Finance Minister
- Union Minister of State for Finance of the other members
- Vice Chairman of the Finance Minister of a state
- Member state finance minister

In the Budget for 2006-07, Finance Minister Pranab Mukherjee had said that GST will be implemented on 1 April 2010, but it was not to be. Now if it were implemented probably Empowered Committee of State Finance Ministers on GST Moder and implementation will be the responsibility.
- Were first introduced in 2011 by Bill states a universal indirect tax system was not to provide compensation for losses. The current legislation provides for compensation to states for five years has been.

- The revised bill is the provision of an additional one per cent for five years. This will give additional compensation to the state where an object is about to Utmadn. There was in the original Vidhyk.
- The original bill the GST Council headed by the Finance Minister for the quorum proportion was one-third. Half the members of this ratio has been increased to the revised bill.

- The revised bill concerning voting at the meeting of the Council stated that the support of one-quarter of the members may also decide, while the original bill had a provision for a consensus decision.
- Basic 115 of the Constitution Amendment Bill was listed as the modified 122 of the Constitution Amendment Bill has been listed as.
- To settle the dispute in the original bill, a retired judge of the Supreme Court or any other court to appoint a committee headed by the Chief Justice was provided for. This provision has been deleted in the revised bill and dispute resolution work has been handed over to the Council.

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