The concept of Goods and Services Tax- GST proposes national Value Added Tax, which would be implemented in India. The goods and services tax would be an inclusive and indirect tax that would be implied on the manufacture, sale as well as consumption of goods and services in India.
This would replace the taxes charged by the Central as well as the State governments. GST would be charged and collected at each stage of sale and purchase of goods and services which would be based on the input tax credit method.
How Would GST Turn Out To Be For The Country?
The GST registered businesses would be able to claim a tax credit with the value of GST that they have paid for purchasing the goods as part their normal commercial activity. Introducing GST would significantly help in reforming the indirect taxation in the country. Simplicity in the tax would take a lead towards easier administration as well as enforcement.
With the introduction of GST, there would be incredible changes in India. GST would initiate the tax rate as nominal or zero. The government has confirmed to compensate the states for the revenue losses that would be incurred by the businesses from the date of introduction of GST for around a period of three years.
GST Put On Hold: Congress Demands To Accept 3 Conditions For Green Signal
The GST Act has not yet been drafted, but only a bill that would give power for drafting the bill is in Rajya Sabha. Congress has been opposing the GST and demands to reform key areas which have slowed down the process of passing a bill. Below mentioned are 3 main concerns that Congress is focused on-
- 1% additional tax for the goods that moves across the states
- Constitutional cap of 18% with an independent dispute
- The ruling government ignores the concerns raised by Congress in the legislation
Some Major Facts That Is Analogous With GST
- As per the collected reports, when BJP was in opposition, they had not produced any demands or proposals when Congress had passed GST bills, they simply opposed GST.
- On the other hand, Congress proposes the government to accept 3 conditions after which they would show green signal to pass GST.
- Rahul Gandhi, Vice President of Congress, has declared that if Government accepts the 3 conditions, then GST bills would be passed within 15 minutes.
With such controversies between the ruling party and opposition party, the GST bill has been put on hold. It’s time to wait for few more days until the bill is either passed or either of the parties’ compromise between their thoughts.