Brief History Of GST:
In the budget speech of 2006-07 Union Finance Minister introduced GST and was proposed to initiate by 1st April, 2010. Plan and the team was formed to discuss the different aspects and its impact. The Empowered Committee Of State Finance Ministers (EC) released its first discussion paper on the GST in November, 2009. Introduction of GST was entirely on the basis of reducing the burden of taxes and also for the transparency of taxes on goods for consumers.
Earlier to GST, there were taxes like service tax, customs duty tax, additional duty of excise, and a lot many but after GST came to force, it replaced these taxes along with many states' taxes like state VAT, entertainment tax etc.
Before we jump into the highlighted benefits of GST let us know more about types of GST like CGST, SGST, IGST etc
Prior to GST, there were taxes such as service tax, customs duty tax, additional duty of excise, and many more, but when GST went into effect, it replaced these taxes as well as many state taxes such as state VAT, entertainment tax, and so on.
Before we get into the highlighted benefits of GST, it's important to understand the different types of GST, such as CGST, SGST, and IGST.
Everything you should know about CGST?
CGST (Central Goods and Services Tax). Central Goods and Service Tax replaced all previous taxes of the central Government.
There are two examples of these Central excise duty and central surcharges
You must have heard of SGST. If someone
asks you what SGST is, how will you respond?
The State Government Sales Tax, or SGST, is the name given to the GST collected and levied by the State Government on purchases made within its physical borders.
What is the purpose of IGST?
IGST ( Integrated Goods and Services Tax). Here we have listed IGST's Advantages
It typically refers to transactions involving two distinct states, also known as interstate commerce.
The Central Government is responsible for collecting the IGST, according to the IGST Act.
Despite the fact that GST has many advantages over the traditional taxation system,
The following are the most prominent advantages.
GST is a sound system.
GST is a straightforward tax system.
It improved the consistency of the taxation system.
previously, paying taxes was a headache because there were so many of them.