What is GST in India (Good and Service Tax) - Explore Study

GST in India introducing the since the idea of national Goods and services tax (GST) mooted by task force in 2004.The task force strongly recommended fully integrated goods and services tax on national basis.

What is GST in India (Good and Service Tax)

Government has launched Goods and services tax 1st July 2017 all over India. Its head office in Delhi and GST first time introduced in India in 2000.

The talk of ushering in GST, however, gain Momentum in the year 2014 when the NDA government tabled the constitution 122 Amendment bill,2014 on GST in the Parliament on 19th December 2014. Lok Sabha pass the bill on 6th May 2015 and Rajya Sabha on 3rd August 2016. subsequent to ratification of the bill by more than 50% of the states, constitution bill, 2014 receive the assent of the president on 8 September 2016 and become constitution 101 Amendment Act 2016 which paved the way of introducing of GST in India.

The government has categorized items in five major slabs – 0%, 5%, 12%, 18% and 28%.

0% tax (No Tax)

These are the items on which no tax will be taken Jute, fresh meat, fish chicken, eggs, milk, butter milk, natural honey, fresh fruits and vegetables, paper, curd, bangles, Kajal, books, kids picture, Handlooms, cotton, seed, oil, cake etc.

5% tax

Package items, footwear, pizza, rusk, coffee, Namkeen, Ayurvedic medicines, homeopathy medicine, sabudana, kerosene, coal, Agarbatti, biogas, fabric etc.

12% tax

Butter, cheese, ghee, dry fruits in packet, electronic base metal, synthetic, nylon, polyester, acrylic, cell phones, fruit juice, frozen meat products etc

18% tax

Trademarks, goodwill, software, Bidi Patta, Biscuits,Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Medical grade disposable gloves, Computer monitors(up to 20 inch) etc.

28% tax

Sunscreen, water heater, motorcycles, dishwasher, vacuum cleaner, hair shampoo, shaving cream, Paints, pan masala, tiles, aircraft for personal use, ATM etc will attract 28 % tax

Goods and Services Tax (GST) is an indirect tax reform which aims to  remove tax barriers between states and create a single market.