GST Bill 2017 Guide – If you’re an Indian then you are kind of in a dilemma at the moment about the current tax situation in the country. With the recent amendments in the taxation policies, people are worried about what changes it may bring about in our day to day lives. Through the GST the government aims at reducing Tax thefts by the rich and aims at making important daily life goods cheaper for everyone. This Bill to shows a step towards becoming a developed nation soon as there are similar taxation laws in countries like Canada and also in many states of the USA.
The GST bill stands for the Goods and services tax bill which are going to be the biggest ever change in the taxation laws ever. It is aimed at simplifying the tax system for everyone. This bill is regarded as a positive step by many as it aims at unifying all markets and making a singular tax instead of many small ones. Some people think otherwise about the introduction of this bill too because in an ideal democracy every action must have a rational explanation.
The GST is going to be the one hundredth and twenty-second amendment bill of the constitution of India. Like the rest of the Constitution, this bill too is an inspiration from one of the developed nations i.e. Canada. The GST would be applicable on all goods and services from 1st July 2017 in India.
GST is essentially a Value added tax for the people to pay on the goods and services that they buy. It is aimed at being a single and only tax for the manufacture, transport, sale, and consumption of products.
GST Bill 2017 Guide – Benefits Explained
GST literally means that tax that would be levied upon buying of any goods or service. The current tax system is really a loophole in itself. there are many small taxes that riddle the consumers and this is what the government wants to simplify with the GST bill. this bill aims to reduce the cascading effects of many taxes by bringing them under the same umbrella.
India has opted out to adopt a dual GST system in which there would be a Central GST ( CGST ) and a state level GST ( SGST ).
The main roadblock that lies in the path of the correct implementation of the system is the coordination between the states. After long debates and parliament sessions that central and the state governments have come to uniform tax rates and thus there should be very little problems with the actual working of the GST policies.
GST is not a new hot topic for the government, instead, it has long been pending in the assemblies to be passed by the MPs. GST was first announced as a potential possibility by the then finance minister P. Chidambaram in the budget sessions of the year 2006. It was aimed that GST is implemented by 2010 financial year but frequent delays and controversies had made it almost impossible for the bill to be passed. The very first discussions for the bill took place in 2009 and since then the bill has been modified heavily to work out best for the Indian population.
GST PDF File Download – GST Bill 2017 Guide
Everyone is pretty excited about the GST bill but how effective will it be to the common man? well, first and foremost the bill would aim at reducing the mess in the form of multiple tax rates that are a burden for everyone. Dual GST means that it would be providing the people with a federal structure i.e. there would be three levels of taxes for people – Central Tax, State Tax, Inter – state Tax.
GST also aims at reducing corruption and promote people taxes on their own. Its main objectives are to weed out the multiple layers of policies that have been messing things up for the people for quite a long time now.
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GST TAX Rate
GST Bill 2017 Guide – Conclusion
The act has been passed in accordance with the article 368 of the constitution which requires any bill to have been ratified by more that half the state legislation. On the 12th of August 2016, Assam became the first Indian state to ratify the bill by unanimously passing the bill in their legislative assembly. Since then the bill has been ratified by almost all the states except the following –
- Jammu and Kashmir
- West Bengal
- Tamil Nadu
Except for these 6 states out of the existing 29 states, the bill had been passed.
The GST tax is levied on people using the destination principle. GST is applied at the place where the final consumption of the good occurs instead of applying it on each and every step of manufacturing and production. Through this tax, the manufacturing industry is said to be refurbished back and help give it a huge boost. Hence, through its basic principles, GST is going to be the tax that has to be levied by the buyer at the end of the sale. This should ease out the production process and also help reduce the price of goods and services significantly.
Overall, the GST bill seems to be a step in the right direction for a rapidly developing nation like India. It is a tax that should’ve been implemented years ago but as the saying goes – better late than never. The main benefit of this tax would be to the consumers, as now there would be no hidden taxes to the cost of a good. This should help increase the economy of the nation significantly. Consumers too can now buy goods at the right costs that they ought to get as there would be no middlemen taxes and only one buyer to seller tax. This would also help reduce the corruption making conducting business seamless and considerably clean the market.