Thing's you need to know about gst

            GOODS SERVICE TAX

PART 1.

 INTRODUCTION : GST is not a new phenomenon . It was first implemented in France in 1954 , and since then many countries have implemented this unified taxation system to become part of a global whole . Now that India is adopting this new tax regime , let us look back at the how and when of the Goods and Services Tax and its history in the nation . 

       France was the world's first country to implement GST Law in the year 1954. Since then , 159 other countries have adopted the GST Law in some form or other . In many countries , VAT is the substitute for GST , but unlike the Indian VAT system , these countries have a single VAT tax which fulfills the same purpose as GST . 

      The concept of GST was visualized for the first time in 1999. On 8 August 2016 , the Constitutional Amendment Bill for roll out of GST was passed by the Parliament ,

     The President of India approved the Constitution Amendment Bill for Goods and Services Tax ( GST ) on 8 September 2016 , following the bill's passage in the Indian parliament and its ratification by more than 50 % of state legislatures . This law will replace all indirect taxes levied on goods and services by the central government and state government and implement GST by April 2017. The implementation of GST will have a far-reaching impact on almost all the aspects of the business operations in India.  With more than 140 countries now adopting some form of GST, India has long been a stand - out exception 

     India's biggest tax reform is now a reality.  A comprehensive dual Goods and Services Tax (GST) has replaced the complex multiple indirect tax structure from 1 July 2017. 

    GST is a value - added tax levied at all points in the supply chain, with credit allowed for any tax paid on input acquired for use in making the supply.  It would apply to both goods and services in a comprehensive manner, with exemptions restricted to a minimum. 

     Concept, Meaning and Definition: Goods and Services Tax (GST) is an indirect tax applicable throughout India which replaced multiple cascading taxes levied by the central and state governments.  It was introduced as the Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. 

    The GST is a Value Added Tax (VAT) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level.  It will replace all indirect taxes levied on goods and services by the Indian Central and state governments.

    Goods & Services Tax is a comprehensive, multi-stage, destination based tax that will be levied on every value addition

     to understand this, we need to understand the concepts under this definition.  Let us start with the term 'multi-stage'.  Now, there are multiple steps an item goes through from manufacture or production to the final sale.  D) Buying of raw materials is the first stage.  II) The second stage is production or manufacture.  III) There is the warehousing of materials.  IV) The sale of the product to the retailer.  V) final stage, the retailer sells you - the end consumer - the product, completing its life cycle.  

 part 2. next blog