With the aim to bring the entire nation under the single taxation system, the government introduced the Goods and Services Tax (GST) on July 1, 2017. The GST is an indirect tax imposed on the supply of goods and services in India. The GST is collected from the point of consumption and not from the point of origin. During the Atal Bihari Vajpayee Government, a task force was formed under Vijay Kelkar to recommend tax reforms in 2002. Meanwhile, in 2005, the Kelkar committee recommended rolling out GST as per the by the 12th Finance Commission. GST May Have Single Standard Rate Between 12-18%: Arun Jaitley.

The United Progressive Alliance (UPA) government also continued work on the proposed GST roll-out. However, after coming to power in 2014, the Narendra Modi government introduced the GST Bill in the Lok Sabha. In May 2016, the Lok Sabha passed the Constitution Amendment Bill, paving way for GST. In August 2016, the Amendment Bill was passed and the then President Pranab Mukherjee gave his assent to it. GST Lowered Tax on TV, Fridge & Other Commonly Used Household Appliances: Finance Ministry.

A 21-member committee was formed to look into the proposed GST laws. After approval by the GST council, various bills including the Central Goods and Services Tax Bill 2017 (The CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill), the Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill), these Bills were passed by the Lok Sabha on March 29, 2017. A week later, the Rajya Sabha also passed these bills.

The tax system under the GST is divided into five slabs – 0, 5, 12, 18 and 24 percent. However, petroleum products, alcoholic drinks, and electricity are not taxed under the GST. GST Collection for April 2019 Peaks at Rs 1.13 Lakh Crore, Highest Since Tax Rollout.

Last year, during the 31st GST review meeting headed by the then Union Minister Arun Jaitley, the decision was taken to slash the GST on 33 items. Out of 33 items, seven were from the 28 percent slab. Importantly, services supplied by banks to a basic savings bank account and Jan Dhan accounts were also exempted from the GST. According to reports, tax collection has also increased after the GST came into the force.

(The above story first appeared on LatestLY on Jun 28, 2019 09:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).