Goods And Service Tax (GST)

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  • Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments.
  • It was introduced as The Constitution (One Hundred and First Amendment) Act 2017.
  • The Goods and Services Tax (GST), India's biggest tax reform in 70 years of independence, was launched at midnight of 30 June 2017 by PM Narendra Modi.
  • GST, which replaces a slew of indirect taxes with a unified tax, is set to dramatically reshape the country's 2 trillion dollar economy.
  • The reform process in India's indirect tax regime was started in 1986 by Vishwanath Pratap Singh with the introduction of the Modified Value Added Tax(MODVAT).
  • GST was first conceptualized and given a go-ahead in 1999 during a meeting between then Prime Minister Atal Bihari Vajpayee and his economic advisory panel.
  • After the fall of NDA govt in 2004, P Chidambaram in February 2006 first mooted for a GST rollout by 1 April 2010.
  • However, during the entire 10 years of indian national congress, member of UPA (United Progressive Alliance) rule, it couldn't be achieved.
  • In 2014, Narendra Modi was elected and with the dissolution of the 15th Lok Sabha, the GST Bill approved by the standing committee.
  • GST will be levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services.
  • GST will replace several existing taxes & levies which include: central excise duty, services tax, additional custom duty, surcharges, state-level VAT & octroi.

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