Table of Contents
CURRENT AFFAIR
- The government has rolled out an ambitious spending programme for building the transport infrastructure and the provision of various goods of value to ordinary citizens.
- The problem has been arranging the money to pay for it all.
GST
- It is a destination-based taxation system.
- It has been established by the 101st Constitutional Amendment Act.
- It is an indirect tax for the whole country on the lines of “One Nation One Tax” to make India a unified market.
- It is a single tax on supply of Goods and Services in its entire product cycle or life cycle i.e. from manufacturer to the consumer.
- It is calculated only in the “Value addition” at any stage of a goods or services.
- The final consumer will pay only his part of the tax and not the entire supply chain which was the case earlier.
- There is a provision of GST Council to decide upon any matter related to GST whose chairman in the finance minister of India.
ASSUMPTION THAT ISN’T WORKING
- One of the key assumptions was that the introduction of Goods and Services Tax (GST) would raise the share of indirect taxes in Gross Domestic Product (GDP) and provide the wherewithal.
- May be anything up to 40% short Central revenue from GST of target this year, and the states are now complaining about non-receipt of share. their GST
MISTAKES MADE ON GST
- Extreme progressivity
- Guarantee to the states
- Goods outside the scope
- Govt’s drive
IMPLEMENTATION PHASE
- fake-bill industry
- Too complex
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