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Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.
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Is the GST going to be revenue neutral?
A reform of the nature and magnitude of GST will require a leap of faith to be taken, as issues are certain to crop up, which has to be resolved effectively through the aforementioned mechanism. Deciding a Revenue Neutral Rate – A revenue neutral rate is one which does not lead to a fall in tax revenues.
What is the role of GST Council in India?
GST Council, a constitutional body, created with 2/3rd representation from states and 1/3rd from centre to examine issues related to GST and Make recommendation on rates, taxes, cesses, surcharges, exemption list, dispute resolution etc.
Why was GST introduced in India in 2003?
GST encapsulates the dictum – “One nation, one indirect tax”. It will make India one unified common market. GST was first mooted in the year 2003 by Kelkar Task Force on indirect taxes, who had suggested subsuming various central and state indirect taxes into one indirect tax.
How does the goods and Services Tax ( GST ) work?
For implementation of GST in the country, Central and State governments have registered Goods and Services Tax Network (GSTN) which is a not for profit, non government company to provide shared IT infrastructure to central and state government, tax payers and other stakeholders. The tax payments and credit will be done through an online network.
Last Update: Oct 2021
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