Goods and Services Tax (GST) was introduced by the Government of India to boost the economic growth of India. GST is considered to be the biggest taxation reform in the history of Indian economy. It was introduced to save time, cost and effort. Goods and Services Tax (GST) Act came into effect in 2017. In order to address the complex system in India, the Government introduced 3 types of GST which are given below.
- CGST (Central Goods and Service Tax)
- SGST( State Goods and Service Tax)
- IGST(Integrated Goods and Services Tax)
As per 2016 GST regime, Union Territory Goods and Service Tax (UTGST) was also introduced to account for all the taxations in the Union Territories of India. The power to make any changes in the GST law is in the hands of GST Council. GST Council is headed by the Finance Minister. One hundred and first amendment act, 2016 introduced the GST in India from July 2017.
Aspirants would find this topic very helpful in the IAS Exam.
What is Central Goods and Services Tax (CGST)?
Revenue under CGST is collected by the Central Government. CGST subsumes the below given central taxations and levies.
- Central Excise Duty
- Services Tax
- Central Sales Tax
- Excise Duty
- Additional Excise Duties Countervailing Duty (CVD)
What is State Goods and Services Tax (SGST)?
Revenue under SGST is collected by the State Government. SGST subsumed the following state taxations.
- Luxury Tax
- State Sales Tax
- Entry tax
- Entertainment Tax
- Levies on Lottery
Who Collects IGST (Integrated Goods and Services Tax)?
IGST is charged when there is movement of goods from one state to another state. The revenue will be collected by the central government and accordingly will be shared between the Union and states in the manner prescribed by Parliament or GST Council.
The above details would help candidates prepare for UPSC 2020.
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