Meaning and Introduction of GST
Meaning and Introduction of GST
Meaning and Introduction of GST
Chapter 1: Introduction
1.1 Introduction
Goods and services tax (GST) has been identified as one of the most important tax reforms
post independence. GST is a path breaking indirect tax reform which will create a common
national market by removing inter-state trade barriers.GST has subsumed (absorbed or
include) multiple indirect taxes imposed by central and state.
GST subsumed the following
Central taxes State taxes
GST was first introduced in France in the year 1954. Within 62 years of its introduction
about 160 countries across the world have adopted GST. Generally GST is popular for single
model but Canada and Brazil also have dual model of GST. India has adopted a dual GST
which will be imposed concurrently by centre and states.
2007 Union Finance Minister, Shri P. Chidambaram, while presenting the central
Budget (2007-08) announced the GST would be introduced in India.
2017 (March) Central Goods and Services Tax Bill, 2017, Integrated Goods and Services
Tax Bill, 2017, Union Territory Goods and Services Tax Bill, 2017 and Goods
and Services Tax (Compensation to States) Bill, 2017 were introduced and
passed these bills in Lok Sabha and receipt of President Assent on 12 th
April, 2007 became enacted. Subsequently State GST laws have been
enacted by respective state Government.
2017 (July) w.e.f 1st July 2017 GST has implemented across India