GST, also known as goods and service tax. We daily come across hearing about gst in various places. We are charged with this specific type of tax on items we daily utilise, buy and sell.
Let us deep-dive a little further into basic questions we have in mind about this goods and service tax.
What is GST?
GST is a tax we pay through purchase and sale of goods and other private services to the Indian Government. Taxes are a major source of income for the government which is used to run the country.
GST is a simplified tax for services and businesses which is made as an addition of different types of taxes together.
GST has become a part of life as much as we pay income tax. Precisely speaking GST has become easier to get paid than any other tax in an indirect way.
GST has been implemented in our country from 1st of July 2017.
The first idea of implementation was given by Atal Bihari Vajpayee in 2000.
Later in February 2015, the Finance minister of the BJP's central government, Arun Jaitley, first introduced the GST bill in Lok Sabha.
The decisions of GST prices and conditions are decided by the GST council. The council consists of The finance minister of the central government as the chairman of the council where the finance ministers of all the states are members of the council.
The present chairman of the council is Nirmala Sitaraman. The council has 31 members from all states and union territories.
As per the citizen's ease and government's needs, there will always be modifications in the ranging of GST prices.
Latest GST rates which got cheaper than before
Transport of goods (18% to 5%)
Rope ways (18% to 5%)
Renting trucks inclusive of fuel costs (18% to 12%)
Orthopaedic appliances (12% to 5%)
No GST on these items when sold loose (not on pre-packed or labelled items)
Latest GST rates which got costlier than before
Dairy machinery (12% to 18%)
pre-packed curd, lassi, buttermilk, milk, paneer(0% to 5%)
Knives, forks, blades, spoons (12% to 18%)
water pumps, deep well pumps (12% to 18%)
Hospital rooms > 5000/- (0% to 5%)
Hotel rooms <1000/- (0% to 12%)
LED lamps and lights (12% to 18%)
printing, writing and drawing ink (12% to 18%)
solar water heater and water heater systems (5% to 12%)
Farming machinery (5% to 18%)
Leather (5% to 12%)
Bank cheques (0% to 18%)
=> There are still some still some exemptions like electricity, alcohol and petroleum products which are not included under central government gst, but the stage government implies gst individually.
=> There are also some goods like soft drinks which are having an MRP price which are inclusive gst and other taxes.
It is our duty as citizens of India to pay taxes rightfully for better economic development of the nation.
So let us be aware of the rights and taxes and serve our duty towards government.
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