WHAT GST IS?
WHAT GST IS?
The form of G.S.T as everyone knows is Goods and Service tax. Still there are questions lurking inside exactly how does this work. So let us ponder over this recurring phenomenon which has gripped us all. The implementation of this tax was made on 1st of July. But the whole idea of Goods and Service Tax was flagged originally in the year 2000 when Atal Bihari Vajpayee actually bought up the matter. The first country to view the effects of G.S.T however was France. The main motive for implementation of this tax system was to ease the trade and industry sector with only one ‘indirect” tax being paid and the rest being subsumed under G.S.T. For example, earlier the manufacturing of any product saw the implementation of Excise Duty and the VAT.
Now with the G.S.T being implemented tax will be levied at every scale, which means every sector employed to do any work would get the required remuneration. Now that a somewhat clear definition of G.S.T can be understood let us ask the second question, what was the need to implement the Goods and Service tax whatsoever? Well, isn’t it making the whole process a lot more complicated somehow? As a matter of fact, it isn’t.
Earlier two kinds of taxes were paid, the direct and the indirect tax. The direct tax used to make every person responsible for his or her own payments like the income tax, but for this indirect tax certain vain excuses often used to flare up. Now the primary objective of this goods and service tax was to ease the whole process and to ensure that tax is being paid regularly.
So now we all are subjected to only three taxes
0 CGST- under which the revenue will be collected by the Central Government.
0 SGST-under which the amount collected, will be used for intra-state sales.
0 IGST- where the revenue collected by Central government will be used for intra- sales purpose.
The end results of this will surely be multifold; it only depends on our cooperation. Not only will it help us to keep the pace with other nations, but will also help us to maintain a more structured tax system. Keeping this as their main idea the bill of G.S.T was passed. Now it only depends on us for our successful cooperation.