GST Definition, Objective, Framework, Action Plan, GST Scope 2021
A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.||A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.||A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.||A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.||A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.||A Brief on GST Bill, GST Definition, Objective, Framework, Action Plan & GST Scope. GST was first recommended by Kelkar Task Force on implementation.

GST Definition, GST Objectives
Historical background of GST
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Definition of GST
Objectives of GST
- One Country - One Tax
- Consumption based tax instead of Manufacturing
- Uniform GST Registration, payment and Input tax Credit
- To eliminate the cascading effect of Indirect taxes on single transaction
- Subsume all indirect taxes at Centre and State Level under
- Reduce tax evasion and corruption
- Increase productivity
- Increase Tax to GDP Ratio and revenue surplus
- Increase Compliance
- Reducing economic distortions
Features of GST Constitution Amendment Act
- Concurrent jurisdiction for levy & collection of GST by the Centre (CGST) and the States (SGST)
- Centre to levy and collect IGST on supplies in the course of inter-State trade or commerce including imports
- Compensation for loss of revenue to States for five years
- GST on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas & aviation turbine fuel to be levied from a later date on recommendations of Council
Legislative Framework
Regulatory Framework of GST
A new set up by Government of India named as ‘GST Council’. GST Council constituted w.e.f. 12.09.2016- (a) the Union Finance Minister (as Chairman),
- (b) the Union Minister of State in charge of Revenue or Finance, and
- (c) the Minister in charge of Finance or Taxation or any other Minister, nominated by each state government.
- Threshold limit for exemption to be Rs. 20 lakh (Rs. 10 lakh for special category States)
- Compounding threshold limit to be Rs. 50 lakh – not available to inter-State suppliers, service providers (except restaurant service) & specified category of manufacturers
- Government may convert existing area based exemption schemes into reimbursement based scheme
Action Plan of GST Council
- List number of Taxes, cesses, and surcharges to be subsumed under GST
- Preparation of list of goods and services subject to, or exempt from GST
- Determination of threshold limit of turnover for application of GST
- Fixation of rates
- Preparation of model GST Laws, principles of levy, apportionment of tax benefits
- Firming up Place of supply Rules
- Recommend on Compensation to states losing on revenue post implementation of GST, subject to maximum time limit of 5 years.
- Passage of SGST laws by all State legislatures
- Recommendation of Model GST Rules by GST Council
- Notification of GST Rules
- Recommendation of GST Tax rates by GST Council
- Establishment and upgradation of IT framework
- Meeting implementation challenges
- Effective coordination between Centre & State tax administrations
- Reorganization of field formations
- Training of Officials
- Outreach programs for all stakeholders including Trade & Industry
Scope of GST
GST shall cover all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council.- All goods and services are covered under GST Regime except Alcoholic liquor for Human Consumption,
- Tobacco Products subject to levy of GST and Centre may also levy excise duty
- GST Council yet to decide the incidence and levy of GST on following;
- a)Crude Petroleum
- b)High Speed Diesel (HSD)
- c)Motor Spirit (Petrol)
- d)Natural Gas
- e)Aviation Turbine Fuel
Advantages of GST
CBEC has released few advantages which would accrue to Citizens, Trade/Industry and the Central/State Government with the introduction of GST. The advantages to the Citizens are listed as:- a. Simpler tax system.
- b. Reduction in prices of goods and services due to elimination of cascading.
- c. Uniform prices throughout the country.
- d. Transparency in taxation system.
- e. Increase in employment opportunities.
- a. Reduction in multiplicity of taxes.
- b. Mitigation of cascading/double taxation.
- c. More efficient neutralization of taxes especially for exports.
- d. Development of common national market.
- e. Simpler tax regime-fewer rates and exemptions.
- a. A unified common national market to boost Foreign Investment and “Make inIndia” campaign.
- b. Boost to export/manufacturing activity, generation of more employment,leading to reduced poverty and increased GDP growth.
- c. Improving the overall investment climate in the country which will benefit thedevelopment of states.
- d. Uniform SGST and IGST rates to reduce the incentive for tax evasion.
- e. Reduction in compliance costs as no requirement of multiple record keeping.