In which year the Goods and Services Tax (GST) was introduced ?

Question

Question

This question was previously asked in

MH SET Paper-II: Sociology 7th April 2024

Answer 1

The correct answer is - 2017

Key Points

Goods and Services Tax (GST)
- GST was implemented on July 1, 2017 in India.
- It is a comprehensive, destination-based tax that replaced various indirect taxes like VAT, Service Tax, and Excise Duty.
- The introduction of GST marked a significant reform in the Indian taxation system.
GST Council
- The GST Council, chaired by the Union Finance Minister, played a pivotal role in drafting and implementing GST.
- The council involves representation from both the Central Government and the State Governments.
Significance of GST
- Eliminated cascading effect of taxes by integrating multiple indirect taxes into one unified system.
- Promoted ease of doing business and streamlined the taxation process across the country.

Additional Information

Types of GST
- CGST (Central Goods and Services Tax): Levied by the Central Government on intra-state supplies.
- SGST (State Goods and Services Tax): Levied by State Governments on intra-state supplies.
- IGST (Integrated Goods and Services Tax): Applicable on inter-state and international supplies.
GST Rates
- GST is categorized into multiple slabs: 0%, 5%, 12%, 18%, and 28%.
- Essential goods and services typically fall under the lower slabs, while luxury and sin goods are taxed at higher rates.
GST Impact
- Improved tax compliance and reduced tax evasion.
- Enhanced revenue collection for the government.
- Boosted economic growth by creating a unified market across India.