INTRODUCTION Service Tax Bill or GST Bill, also

INTRODUCTION

France was the first country to
introduce the GST system in 1954.Till now, around 150 countries are following
it. In 2000 the idea of GST was introduced by the Vajpayee government by
setting up an empowered committee headed by Dr. Asim Dasgupta. For studying GST
and its impact on India, many teams and task forces were appointed by the
government. The Goods and Service Tax Bill or GST Bill,
also  passed from Rajya Sabha on 3 August 2016 with amendments. After
moving to Loksabha, it was approved on 08 August, 2016.GST Act was
passed in parliament on 29th March 2017.It came into effect from 1st
July 2016.

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 GST stands for “Goods and Services Tax”, and is a
comprehensive indirect tax levy on manufacture, sale and consumption of goods
as well as services at the national level. It is levied on value addition. It has
replaced all indirect taxes namely VAT, Excise duty, service tax and Sales tax.
It is aimed at being comprehensive for most goods and services. It is a consumption based tax applied on goods and
services at the place of its consumption. The GST implementation in India is “Dual?
in nature, i.e. India has adopted dual GST instead of national GST. The two
components of GST in India are CGST (Imposed by Centre) and SGST (Imposed by
state and Union Territories).  There are
3 taxes applicable under GST: CGST, SGST & IGST.

CGST: Collected by the Central Government on an
intra-state sale.
SGST: Collected by the State Government on an
intra-state sale.
IGST: Collected by the Central Government for
inter-state sale.

Fot the intra state  sale, the total tax would be
CGST+SGST and the revenue will be shared equally between the centre and the
state. For the transactions including interstate trade, there will be only one
type of tax(Central). The centre will then share the IGST revenue based on destination
of goods.In this destination principle the
producers and traders need not shoulder the financial burden as they are not
responsible to collect taxes on behalf of government rather it is the retail
trader’s responsibility to collect tax. 
The state which consumes more is likely to benefit more than the
producing state.  As such it paves a way
to the state which is consuming more and remains in the less developed status
to tap more revenue and deploy the same for their growth and development. GST besides
addressing the tax evasion and corruption it increases the productivity and
alleviate poverty and economic distortions.

 

 2. Review of Literature

Parkhi Shilpa, 
study highlighted the challenges which the business system, tax system
has to face in new GST regime and concluded that it is the welcome move to
India’s fast paced economy .Rajesh R. Desai et al investigated various
opportunities and challenges lay ahead for the state government in relation to
GST in India.

Lourdunathan F, Xavier P (2017)
investigated the equivocal opinions among the Manufactures, traders and society
about the Goods and Services Tax (GST, the Challenges of Introduction of GST in
India and the Prospects in Implementation GSTin India .

Yogesh Garg1, Jyoti Gupta2(2017) focused on
the tax structure in india, role of government in gst and the proposed benefits
of gst.

Majority of the countries following the GST
have adopted the Consumption type GST which provides input tax credit of all
the capital goods from the firm’s sales.(Shoup, 1990)

3. Objectives of the Study

·        
To
study about the Goods and service act

·        
 To examine about the GST implications on tax
structure, tax incidence and tax compliance.