GST

GST is the largest taxation bill that was introduced in India post its independence in the year 1947. All the taxes such as Subsidies, Custom, Levi tax come under the central government and there are some taxes that come under the state such as VAT(value added tax) are a part of the state GST.

Currently the manufacturing tax in India is nearly 20-22% and the service tax ranges between 14-15%. After the GST is implemented in the country, all the state governments as well as central government should agree on a particular percentage bracket that is likely to be in the range of 18%. The manufacturing tax will fall to 18% from 20%, but there will be increase in the service tax from 15% to 18%.

The products that are made in India such as Maruti Suzuki, Bajaj etc. will get cheaper and even electronic products would also become cheaper. On the contrary, mobile bills will get costlier. Also, watching movies would be cheaper but, eating out would be costlier.

The idea of GST was first brought to Parliament in the year 1991 by CV Raman, but it failed. In the year 1999, the then Prime Minister, Shri. Atal Bihari Vajpayee, thought of reintroducing the bill, but unfortunately he also failed. Eight years later, in the year 2007, the UPA finance minister, P.Chidambaram presented the bill in Lok Sabha, but the opposition failed to implement it. In the year 2014, GST was passed by the Lok Sabha and after two years, in 2016, the Rajyasabha also passed the bill.

Thus, GST came into existence after 25 years of foundation. It will be implemented from 1 April 2017 and concurrent effects would be seen the Financial Year 2018-19.