GST (Goods and Services Tax) Day

Tags: Economy/Finance Important Days

To commemorate the anniversary of the implementation of the historic tax reform of the Goods and Services Tax, 1 July is observed as GST (Goods and Services Tax) Day.

  • Important facts

  • The first GST Day was celebrated on 1st July 2018 to mark the first anniversary of the new indirect tax regime i.e. Goods and Services Tax (GST).

  • GST was implemented on the intervening night of 30 June and 1 July 2017 in a function held in the Central Hall of Parliament.

  • On 29 March 2017, the Goods and Services Tax Act was passed in the Parliament and the Act came into force on 1 July 2017.

  • GST was enacted as the 101st Constitutional Amendment Act, 2016.

  • What is GST?

  • GST is an indirect tax which has been implemented with the aim of making India a unified common market.

  • It is a single tax levied on the supply of goods and services from the producer to the consumer.

  • Under GST, on the one hand indirect taxes like Central Excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty are included at the Central level.

  • On the other hand, state-levied value addition tax, entertainment tax, octroi and entry tax, luxury tax, etc. are also included.

  • It was introduced with the slogan 'One Nation One Tax'.

  • Tax Structure under GST

  • Central GST (CGST) to cover excise duty, service tax etc.

  • State GST (SGST) to cover VAT, luxury tax etc.

  • Integrated GST (IGST) to cover inter-state trade.

  • IGST itself is not a tax but a tax system to coordinate state and union taxes.

  • It has a 4-tier tax structure of 5%, 12%, 18% and 28% for all goods and services under the slab.

Please Rate this article, so that we can improve the quality for you -