Genesis of GST in India

 Genesis of GST in India


 In 2000,  the Vajpayee Government started the discussion on GST by setting up an empowered committee. The committee was headed by Asim Dasgupta ( Finance minister of West Bengal). It was given the task of designing the GST model and overseeing the IT back-end preparedness for rollout. it is considered to be a major improvement over the pre-existing central excise duty at the national level and the sale tax system at the state level, the new tax will be a further significant breakthrough and the next logical step toward a comprehensive indirect tax reform in India.

The GST is recommended by the Kelkar task force on implementation of fiscal responsibility and budget management act (FRBM Act,2003). The task force strongly recommended fully integrated GST on the national basis. A proposal to introduce the national level Good and Service tax by April 2010 was first mooted in the Budget Speech by the union finance minister Shri P. Chidambaram while presenting the central budget of 2007-2008. Since the proposal involves reform/restructuring of not only indirect tax levied by the center but also the state, the responsibility of preparing a design and roadmap for the implementation of GST was assigned to the empowered committee of state finance minister (EC).

In 2014 the talk of ushering in GST, however, gained momentum when the NDA government tabled the constitution (122nd Amendment) bill, 2014 on GST in the parliament on 19th December 2014. The Lok Sabha passed the bill on 6th May 2015 and Rajya Sabha on 3rd August 2016. Subsequent to ratification of the bill by more than 50% of the states, constitution (122nd Amendment) bill, 2014 received the assent of the president on 8th September 2016 and become constitution (101th Amendment) Act 2016, which paved the way for the introduction of GST in India.

The central GST legislation - central goods and service tax bill 2017, integrated good and service tax bill 2017, union territory goods and service tax bill 2017 and goods and service tax (compensation to states) bill, 2017 was introduced in Lok Sabha on 27th March 2017 and were passed on 29th March 2017 and with the receipt of the president's assent on 12th April 2017, the bill was enacted.

The government has rolled out GST W.E.F 1st July 2017.

The introduction of goods and service tax (GST) is a very significant step in the field of indirect tax reform in India. by amalgamating a large number of central and state taxes into a single tax, it mitigates cascading effect or double taxation in a major way and paved the way for the common national market.



                                                                   -Publish By: Anurag Khandelwal

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