Tax is the money that is paid by people to the government. It is also referred to as the duty of every citizen to pay taxes according to their income. The money paid by the people of the nation is utilized by the government for public welfare works. Tax is basically categorized into direct and indirect tax. Income tax is stated as a direct tax. The indirect tax earlier was composed of different types of taxes like sales, excise, entertainment, VAT, etc. The taxes have been replaced recently in 2017 by a single tax called GST (Goods and Service Tax). We can observe this tax written on bills of different items.
Ten Lines on GST (Goods and Service Tax) in English
GST is an important topic for exam aspirants and school students. Students are often asked to write an essay, paragraph, or short note on this topic. I have provided sets of ten lines with precise explanations of this topic. I hope that this might be useful to all students and readers in getting a quick idea about this topic.
1) GST (Goods and Service Tax) is categorized as indirect tax in India.
2) This tax was instituted in India on 1st July in the year 2017.
3) It is coordinated by the GST council that constitutes of finance ministers of the central and state governments.
4) GST is applied to the supply of goods and services in India.
5) The introduction of GST has replaced the complex structure of different indirect taxes.
6) GST is stated as a multistage tax as it is levied on different stages of production.
7) GST is just imposed in the production stages but not collected.
8) Petroleum products, alcoholic drinks, and electricity are excluded from GST.
9) 0%, 5%, 12%, 18%, and 28% are tax slabs for different goods and services.
10) The tax slabs are differentiated into five categories for different goods and services.
1) The foundation of the GST bill was laid by drafting the GST Law in the year 2000.
2) GST Tax Bills were passed in the Lok Sabha on the 29th of March, 2017.
3) The bills were passed in the parliament with a majority of 336 votes.
4) These bills were further approved in Rajya Sabha on 6th April 2017.
5) GST bills were finally validated as Acts on 12th April 2017.
6) The President of India launched the GST (Goods and Service Tax) on 1st July 2017 in the nation.
7) The collection of this tax begins from the step of consumption of the products by the customers.
8) The previous indirect taxes were being collected from the initial step of production.
9) The vision for introducing GST was to bring a similar taxation scheme throughout India.
10) A single taxation system will aid in reducing corruption in the nation.
GST (Goods and Service Tax) is classified as CGST as Central GST, SGST as State GST, and IGST as Integrated GST. The introduction of the GST tax system in India has helped in enabling a uniform taxation system in India. The customers now have to pay a single tax instead of paying for several taxes. It is beneficial for small-scale industries and startup businesses as their taxes get reduced. This system of tax is totally an online procedure and thus there is transparency with almost no chances of corruption and greater chances of enhancement in the GDP of the nation.
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FAQs: Frequently Asked Questions on Goods and Service Tax
Ans. France was the first country to introduce GST in the year 1954.
Ans. The Canadian model of GST has been adopted by India.
Ans. There are 33 members in the GST council.
Ans. Assam was the first state in India to implement GST.