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GST start date in india

GST start date in India

GST start date in India: GST was launched at midnight on 1 July 2017 by the former President of India, Pranab Mukherjee, and the Prime Minister of India Narendra Modi.

GST start date in india

GST start date in India

The launch was marked by a historic midnight (30 June – 1 July) session of both the houses of parliament convened at the Central Hall of the Parliament.

GST start date in India Highlights

GST start date in India: The details covered in this article are as follows

  • About GST start date in India 
  • Formation of GST in India
  • About E-Way Bill
  • GST Rates HSN code in GST.
  • Taxes subsumed

GST start date in India

GST start date in India: Goods and Services Tax (GST) is an indirect tax levied in India on the sale of goods and services. Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%,14%,18% and 28%. Petroleum products and alcoholic drinks are taxed by the individual state governments. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.
Also, a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars, and tobacco products.

The tax came into effect from July 1, 2017, through the implementation of 101 Amendment of the Constitution of India by the Modi government.
The tax replaced existing many cascading taxes levied by the central and state governments.
The tax rates, rules, and regulations are governed by the GST Council which comprises finance ministers of center and all the states.
GST simplified a slew of indirect taxes with a unified tax and is thus expected to reshape the country’s 2 trillion dollar economy.

GST Formation

GST start date in India: A 22-members selected committee was formed to look into the proposed GST laws.
After GST Council approved the Central Goods and Services Tax Bill 2017 (The CGST Bill),
the Integrated Goods and Services Tax Bill 2017 (The IGST Bill),
the Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill),
the Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill),
these Bills were passed by the Lok Sabha on 29th March 2017. The Rajya Sabha passed these Bills on 6th April 2017 and were then enacted as Acts on 12th April 2017.
Thereafter, State Legislatures of different States have passed respective State Goods and Services Tax Bills.
After the enactment of various GST laws, Goods and Services Tax was launched all over India with effect from 01 July 2017.
the Jammu and Kashmir state legislature passed its GST act on 7 July 2017,
thereby ensuring that the entire nation is brought under a unified indirect taxation system.
There was to be no GST on the sale and buy of securities. That continues to be governed by Securities Transaction Tax (STT).

GST E-Way Bill

GST start date in India: An E-Way Bill, a GSTN project under the Goods and Services Tax, is required to be generated for every inter-state movement of goods beyond 10 kilometers (6.2 mi) and the threshold limit of ₹50,000 (US$770).

GST Rates

GST start date in India: The GST is imposed at variable rates on variable items. The rate of GST is 2.5% for soaps and 28% on washing detergents. GST on movie tickets is based on slabs, with 18% GST for tickets that cost less than Rs. 100 and 28% GST on tickets costing more than Rs.100 and 5% on readymade clothes. The rate on under-construction property booking is 12%.
Some industries and products were exempted by the government and remain untaxed under GST, such as:-

  • dairy products,
  • products of milling industries,
  • fresh vegetables & fruits,
  • meat products, and other groceries and necessities.

Check posts across the country were abolished ensuring free and fast movement of goods.

The Central Government had proposed to insulate the revenues of the States from the impact of GST, with the expectation that in due course,
GST will be levied on petroleum and petroleum products. The central government had assured states of compensation for any revenue loss incurred by them from the date of GST for a period of five years. But, no concrete laws have yet been made to support such action. GST council adopted concept paper discouraging tinkering with rates.

HSN code in GST

GST start date in India: HSN (Harmonized System of Nomenclature) is an 8-digit code for identifying the applicable rate of GST on different products as per CGST rules.
If a company has turnover up to RS. 1.5 Crore in the preceding financial year then they need not mention the HSN code while supplying goods on invoices.
If a company has turnover more than 1.5 Cr but up to 5 Cr then they need to mention the 2 digit HSN code while supplying goods on invoices.
If turnover crosses 5 Cr then they will mention the 4 digit HSN code on invoices.

GST Taxes subsumed

GST start date in India: The single GST(goods and service taxes) replaced several former taxes and levies which included:-

  • central excise duty,
  • services tax, more customs duty,
  • surcharges,
  • state-level value added tax,
  • Octroi.

Other levies which were applicable to the interstate transportation of goods have also been done away with in GST regime.
GST is levied on all transactions such as sale, transfer, buy, barter, lease, or import of goods and/or services.

India adopted a dual GST model, meaning that taxation is administered by both the Union and State Governments.

  • Transactions made within a single state are levied with CGST by the Central Government and SGST by the State governments.
  • For inter-state transactions and imported goods or services, an IGST is levied by the Central Government.

GST is a consumption-based tax/destination-based tax, thus, taxes are paid to the state where the goods or services are consumed not the state in which they were produced.
IGST complicates tax collection for State Governments by disabling them from collecting the tax owed to them from the Central Government.
Under the previous system, a state would only have to deal with a single government to collect tax revenue.

Other Important Articles on GST

Conclusion GST start date in India 

GST start date in India:- In this article, we discussed all information about GST start date in India, the points are –

  • About GST start date in India 
  • Formation of GST in India
  • About E-Way Bill
  • GST Rates
  • HSN code in GST.
  • Taxes subsumed

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