GST slab, payment and dispute
Modi government implemented GST within the year 2017 to implement the uniform legal system within the country. This is often a tax that has been applied to the manufacturing, sale, and use of any goods or services across the country. This abolished taxes on excise duty, central nuisance tax (CST), state nuisance tax i.e. VAT, entry tax, lottery tax, stamp tax, telecom license fees, turnover tax, use, or sale of electricity and transportation of products.
How many sorts of GST are there
1. CGST i.e. Central GST: it’s charged by the Central Government.
2. SGST i.e. State GST: it’s collected by the government.
3. IGST i.e. Integrated GST: If a business is between two states then it’s taxed. The Central Government collects it and distributes it equally between the 2 states.
4. Union Territory GST: Goods, services, or both of which are administered by the Union Government. it’s collected by the Central Government.
Why was GST implemented?
GST (Goods and Services Tax) was adopted to enhance the gathering of taxes at each nodal point and to integrate the country through an equivalent GST tax-rate. By removing the long list of indirect taxes levied individually by the states and therefore the Center, the Indian economy also will get a big boost. GST was implemented after the govt passed these four bills. Goods and Services bill, Integrated GST Bill, Compensation GST Bill and Union Territory GST Bill.
GST follows a 4-tier tax slab because the government found it unfair to impose uniform tax rates on both essential goods and luxuries. Thus, the GST tax slab applicable to goods and services in India is 5%, 12%, 18% and 28%. Regular items like food grains, eggs, jaggery, salt, bread, etc., for mass consumption, don’t attract any taxation.
GST compensation dispute was interrupted by Prime Minister Narendra Modi. After which the PM asked for an in-depth description of the GST compensation. The PM sought a report from the Finance Ministry. Explain that the dispute over GST compensation goes on within the states and in the middle. Explain that under the GST Act, the states were guaranteed compensation from the loss of revenue within the first five years of the implementation of GST from Dominion Day, 2017, but under the prevailing formula of distribution, the central government is in a position to share the GST of the states. isn’t capable of.
The Center has released
GST compensation of 36,400 crores. allow us to know that the Central Government had issued GST compensation of 36,400 crores to the states in June. This amount is from December 2019 to February 2020. The central government has already issued GST compensation of Rs 1,15,96 crore between April-November 2019 to the states.
In July, the central government released the last instalment of Rs 13,806 crore. The GST Council was scheduled to satisfy again in July to re-work on the compensation payments to states. However, this meeting has not been held yet. The amendment to the GST Act of 2017 continues to be discussed.