GST stands for Goods and Services Tax. GST was introduced in order to replace the existing types (multiple) of indirect taxes which were levied by both Central and State Governments for simplifying the system of indirect tax. GST (Goods and Services Tax) is that particular tax which is levied on a consumer when he or she buys any type of good or service. GST targets to bring one comprehensive tax, by accumulating all existing taxes under a single umbrella.
The concept of GST came into the limelight several years back (beginning of 2000), but its final implementation was done in the month of July 2017 under the capable guidance and supervision of Prime Minister Narendra Modi. The concept of GST went through several ups and downs before getting complete acceptance from the citizens of India.
The GST Bill is a major point of discussion across India and even abroad and all thanks to GST for creating a complete reformation of the taxation system of the nation. The sole objective of this bill is to unify the taxes making it alike for both consumers and suppliers. It stands for ONE NATION ONE TAX.
• Removal of multiple taxes
• Providing a wider tax base
• Reduction in the level of complexity at the time of tax computation and its documentation
• Easing out the process to do business
• Rationalization of the structure of the tax
• Offering a Single rate of tax across the nation
• Complete Automation of the procedures related to tax compliance
There are 4 components which are part of GST Bill and they are:
• Central Government GST- CGST
• State Government GST - SGST
• Union Territory GST- UTGST
• Interstate GST- IGST
Above is a small brief about the GST bill.