Goods and Service Tax bill is all over the news these days. It is important for
every one to understand it completely.
1.The Goods and Service Tax bil, touted to be India's biggest tax reform, will simplify the current system of taxation. The bill will convert the country into a unified market by replacing all indirect taxes with one tax.
2. The constitution (122nd Amendment) Bill, 2014 was introduced in Lok Sabha on December 19, 2014. It was passed in that House May 6, 2015.
What is GST?
1. GST (Goods and Service Tax) is a tax levied when a consumer buys a good or service.
2. The current tax regime is riddled with indirect taxes which the GST aims to subsume with a single comprehensive tax, bringing it all uner a single umbrella.
3. Which means, various taxes like Exice Duty, Value Added Tax (VAT), Central Sales Tax, Counter vailing duty, Octroi,Luxury test and Entry Tax will all be included under a single roof by GST.
4. The very important feature of GST bill is that instead of collection of Taxes at every step, it will be collected in one step. Goods and Services will be treated equally and will be taxed similarly.
GST BILL HISTORY
1. In 2009, UPA government opened a discussion regarding it. It was the first mention of GST. At that time this was introduced successfully but it could not be passed.
2. December 17, 2014 was an important date for GST because NDA government made slight changes and redefined it in Lok Sabha.
3. On 6th May 2015 Lok Sabha gave green signal to GST.
BENEFIT OF GST
1. Subsume all indirect taxes at the centre and the state level.
3. Reduce the cascading effect of taxes on taxes.
4. Increase productivity and transparency, increase tax-GDP ratio.
5. Reduce/ Eliminate tax evasion and corruption.
EXEMLTIONS OF GST
Alcoholic liquour for human consumption is exempt from GST.
INITIALLY GST WILL NOT APPLY TO
1. Petroleum Crude.
2. High speed diesel.
3. Motor Spirit (Petrol)
3. Motor Spirit (Petrol)
4. Natural Gas
5. Aviation turbine fuel
Tobacco and tobacco products will be subject to GST. The centre may also impose excise duty on tobacco.
SALIENT FEATURES OF GST
1. About 2/3 GST council members come from the states and any decission of council can be enforced only after it secures the assent of 75% of the members.
2. If states think that they are loosing the revenues due to GST implementation, they are empowered to impose 1% more tax than the accepted GST for the first two years.
3. If states incur revenue losses due to introduction of GST, the centre will compensate 100% loss for first three years, 75% of the loss on the fourth year and 50% loss in the fifth year.
4. Though petroleum products are part of the GST regime, there will be no tax levied on them and staes can continue to levy their valu-added tax. In the beginning, the centre will collect excise tax for some years.
All the state an central taxes will be levied through a single tax. As a result several taxes will be abolished and the practice levying taxes on taxes- tax cascading - will also be abandoned.
SOME PROBLEMS ON GST
1. Does not include petroleum and alcohol products. Heavy loss to the exchequer.
2. Tax sharing between states and the centre is another bottleneck.
3. Very high rates compared to current VAT.
Current Affairs & GK - 06-03-2017
1. India's largest Tricolour hoisted on Tallest Flag post at Attari Border.
2. Indian Navy oldest warship INS VIRAAT, decommissions on March 6 after 30-year service.
3. Joint Millitary exercise AL NAGAH-II begins between India-Oman in Himachal Pradesh.
4. Kerala's Vaikom Vijaylakshmi sets record to play Gayathri veena for continous five hours.
5. SBI to impose penalty on Non-Maintenance of Monthly Average Balance in Accounts from April 1.
6. Indonesia is hosting the 20th Indian Ocean Rim Association (IORA) summit 2017.
7. Sam Querrey wins ATP Mexico Open 2017.
8. Ashwin made a record of most balls bowled in a test season surpassing Anil Kumble.
9. HDFC bank launches chatbot Eva for customer service.
10. Former Halti President Rene Preval dead at age 74 .
Current Affairs & GK - 05-03-2017
1. India for first time going to host ICEGOV 2017.
2. Andy Murray wins 2017 Dubai Tennis Championship men's single title.
3. West Bengal clinical establishments (Registration, Regulation and Transparency) Bill,2017 passed.
4. Andhara Pradesh Government has renamed Tirupati Airport as Sri Venkateswara Airport and Gannavaram Airport as NTR Amaravati Airport.
5. WCCBconducts operation Thunderbirdand Operation Save Kurma to Combat Wildlife Crime.
6. Haryana Government announces Tirtha Darshan scheme for senior citizen.
7. India to lead the world in smartphone adoption during 2016-2020: GSMA report.
8. IRDAI proposes 50% hike in motor insurance premium from April 1.
9. M P Virendra Kumar presented Moorti devi award.
10. Baichung Bhutia removed as AIFF advisor .
11. Aadhaar mandatory for students to get Mid-Day Meal.
Current Affairs & GK - 04-03-2017
1. National Safety Day: 4th March.
2. Final Draft of Central GST & Integrated GST approved by GST Council.
3. Senior IAS officer T Jacob appointed as Secretary UPSC .
4. West Bengal gives official status to Tribal language 'Kurukh' .
5. P K Purwar appointed MTNL CMD.
6. Maria Sharapova handed wildcard to participate in the Italian open.
7. Former Indian cricketer Akash Chopra released book titled 'Numbers Do Lie'.
8. INHS ASVINI mumbai receives Raksha Mantri's Trophy, named best service hospital in the AFMS.
9. Assam to host river festival 'Namami Brahmaputra'.
10. BIRAC regional enterpreneurship centre set up in Bengaluru.
11. Ministry of Human and Child Development observes Swachta Pakhwada throughout India.
12. Former MP, diplomat Syed Shahabuddin passes away.
Current Affairs & GK - 03-03-2017
1. National Defence Day: 3rd March.
2. World wildlife day: 3rd March.
3. Paneerselvam inaugurates Portal 'Amma Kalviyagam'.
4. South Korea and United States Begin Annual Military Drill Foal Eagle.
5. Amjad Hussain B Sial (Pakistan) has become the new Secretary-General of SAARC.
6. 13th Economic Cooperation Organization (ECO) Summit heldin Pakistan.
7. Govt directs all banks to provide M-Banking facility to all customers by March 31.
8. Sri Lanka wins 'Most Popular Tourism Destination Award'.
9. Dharamshala approved as Himachal Pradesh's 2nd capital.
10. Aadhaar to be made compulsory on online Railway Ticketing System .
11. French football legend Raymond Kopa passes away.
12. Veteran politician, former MP Yumnam Yaima Singh passes away.
Current Affairs & GK - 02-03-2017
1. Kerala's capital Thiruvanthpuram Ranks Best City in Urban Governance Survey.
2. Kerala tops among all other states in GST registration.
3. JS Deepak named India's next ambassador to WTO (World Trade Organisation ).
4. Navy successfully test-fires anti-ship missile from Kalvari submarine.
5. 100 districts in India declared ODF under Swach Bharat Mission.
6. AIFF appints Luis Norton de Matos New Head Coach of India U-17 Football Team..
7. Kripa Bishnoi appointed as International Match Referee by UWW.
8. EPFO (Employees' Provident Fund Organisation)made Aadhaar Card compulsory for final settlement of pension claims.
9. Kohli to be first to named as India's best international cricket for the 3rd time. .
10. Kohli and Ashwin nominated for Polly uMRIGAR and Dilip Sardesai awards respectively.
11. World women's Chess Championship 2017 Harika wins bronze.
Current Affairs & GK - 01-03-2017
1. Narendra Singh Tomar Launches Swach Shakti Saptah in Haryana.
2. Shri Sudeep Lakhtakia to hold additional charge as DG CRPF.
3. CISCO and Reliance Jio to build world's largest All-IP Digital Services
4. India Successfully Test-Fires Indegenously Developed Supersonic Interceptor
5. Renowned Gujarati writer Tarak Mehta Dies at 87.
6. 29th International Yoga Festival begins in Rishikesh.
7. India's Radhanagar beach in Andaman Islands features in top 10, ranks 8 in the
8. Lipstick under My Burkha has won the audience award at the Glasgow Film
9. Sanjiv Singh appointed as the Indian Oil Corporation chairman.
10. MC Chauhan appointed as the GM of North Central Railway.