Goods and Services Tax (GST) for UPSC - Target IAS Kannada
GST implemented on July 1, 2017, marked a paradigm shift in India's taxation system. It replaced the complex and fragmented pre-GST indirect tax str
GST 2017: A Game Changer in India's Tax System Introduction:
The Goods and Services Tax (GST), implemented on July 1, 2017 , marked a paradigm shift in India's taxation system. It replaced the complex and fragmented pre-GST indirect tax structure , unifying the country into a single market with a "One Nation, One Tax" framework. Pre-GST Indirect Tax System for UPSC Mains Working of GST in India Features of GST 2017: Comprehensive Tax Structure:
GST subsumes multiple central and state taxes like VAT, excise duty, and service tax, simplifying compliance and administration. Destination-Based Tax:
GST is levied at the point of consumption rather than origin, benefiting consumer states. Input Tax Credit Mechanism:
Businesses can claim credit for taxes paid on inputs, mitigating the cascading effect and reducing the overall tax burden. Dual GST Model: Central GST (CGST): Collected by the central government. State GST (SGST): Collected by state governments. Integrated GST (IGST): Levied…