GST
ACT - ECONOMY
News:
GST collections rise to
₹1.72 lakh crore in October
What's
in the news?
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Recently, the Growth in India’s gross
Goods and Services Tax (GST) revenues bounced back in October with tax collections rising at a 10-month
high pace of 13.4% to hit the second highest monthly tally of ₹1.72 lakh crore.
About
Goods and Services Tax:
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It was introduced in 2017, through 101 Constitutional Amendment Act.
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Applicable
on supply side: GST is applicable on ‘supply’ of goods or
services as against the old concept on the manufacture of goods or on sale of
goods or on provision of services.
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Destination
based Taxation: GST is based on the principle of
destination-based consumption taxation as against the present principle of
origin-based taxation.
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Dual
GST:
It is a dual GST with the Centre and the States simultaneously levying tax on a
common base. The GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST).
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Import
of goods or services would be treated as inter-state supplies
and would be subject to Integrated Goods
& Services Tax (IGST) in addition to the applicable customs duties.
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GST
rates to be mutually decided: CGST, SGST & IGST
are levied at rates to be mutually agreed upon by the Centre and the States.
The rates are notified on the recommendation of the GST Council.
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Multiple
Rates: Initially GST was levied at four rates viz. 5%, 12%,
16% and 28%. The schedule or list of items that would fall under these multiple
slabs are worked out by the GST council.
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Excluded
items: Alcohol for human consumption, tobacco, electricity,
and petroleum products like crude oil, Aviation Turbine Fuel (ATF), High-Speed
Diesel (HSD).