GST is a multi-stage tax charged on each value addition. It is imposed on goods and services on every level of the distribution chain. There are 4 types of GST which are given below
- Central Goods and Services Tax (CGST)
- State Goods and Services Tax (SGST)
- Integrated Goods and Services Tax (IGST)
- Union Territory Goods and Services Tax (UTGST)
Aspirants would find this topic very helpful in the IAS Exam.
How to Calculate GST?
The steps to calculate the GST are as follows.
- Determine the net price (price without GST).
- Find out the GST rate
- To calculate the tax amount, multiply the net price by GST rate.
- To determine gross price multiply the net price by GST rate
- Add it to the VAT exclusive price.
How Many Rates are there in GST?
The different GST tax slabs are given below.
GST council has fixed over 1300 goods and 500 services under the above 4 given tax slabs. Around 81% of all goods and services fall below or in the 18% tax slab.
Who is the Founder of GST?
France was the first country to introduce GST in 1954. Currently around 160 countries have implemented the GST. In India the idea of GST was proposed in a meeting between former Prime Minister A B Vajpayee and his economic advisory panel made of former RBI governors C Rangarajan, Bimal Jalan, IG Patel. A committee was formed headed by the former Finance Minister of West Bengal, Asim Dasgupta. Finally GST was launched all over India on 1st July, 2017.
The above details would help candidates prepare for UPSC 2020.
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