The Prime Minister, Shri Narendra Modi has lauded the GST on marking 5 years and said that this is a major tax reform that furthered ‘Ease of Doing Business’ and fulfilled the vision of ‘One Nation, One Tax‘.
In response to a tweet by MyGovIndia, the Prime Minister said;
“We mark #5YearsofGST, a major tax reform that furthered ‘Ease of Doing Business’ and fulfilled the vision of ‘One Nation, One Tax.’”
We mark #5YearsofGST, a major tax reform that furthered ‘Ease of Doing Business’ and fulfilled the vision of ‘One Nation, One Tax.’ https://t.co/fL3kJbz4ty
— Narendra Modi (@narendramodi) July 1, 2022
GST in India
The Government of India launched GST at midnight on 1 July 2017. The launch was marked by an historic midnight session (30 June – 1 July) of both houses of parliament. Guests from the business and entertainment world, including Ratan Tata, attended.
In India, the Goods and Services Tax (GST) is an indirect tax (or consumption tax). In essence, it’s a comprehensive, multistage, destination-based tax: comprehensive since it includes nearly all indirect taxes, except for a few state taxes. Due to its multi-stage nature, the GST is imposed at every stage of production, but it’s supposed to be refunded to everyone outside of the final consumer. Also, as a destination-based tax, it’s collected at the point of consumption instead of the point of origin.
For tax collection, goods and services are divided into five tax slabs: 0%, 5%, 12%, 18%, and 28%. Petroleum, alcoholic drinks, and electricity aren’t taxed under GST, but instead by state governments, as they were before.