Goods And Services Tax (GST) Day is annually observed across India on 1 July to commemorate the implementation of the GST regime, a comprehensive indirect tax levied on the supply of goods and services in India, which came into effect on 1 July 2017.
- 1 July 2024 marks the observance of the 7th GST Day
- The theme for the GST Day 2024 is, “Sashakt Vyapar Samagra Vikas” (Empowered Trade Overall Growth).
About GST:
i.The GST is a comprehensive indirect tax that replaced around 17 cascading taxes and cesses levied by the central and state governments, such as excise duty, service tax, Value-Added Tax (VAT), etc.
ii.GST is a testament to cooperative federalism, with all decisions in the 27 GST Council meetings taken by consensus, GST- “One Nation, One Tax, One Market,” fostering economic unity.
Background:
i.GST was launched on July 1, 2017 in India. The Government of India (GoI) announced the decision to celebrate the 1st July of every year as ‘GST Day’ On 30 June 2018.
iii.The 1st ever GST Day was observed on 1 July 2018, to commemorate the 1st year of the unprecedented reform of Indian taxation.
Genesis of GST in India:
i.The idea of a nationwide GST in India was 1st proposed by the Kelkar Task Force on Indirect Taxes in 2000.
ii.Objectives: To replace the complex and fragmented tax structure with a unified system that would simplify compliance, reduce tax cascading, and promote economic integration.
iii.The Constitution (122nd Amendment) Bill, 2014, which aimed at amending the Constitution to enable the implementation of GST was introduced in the Parliament and was passed by the Lok Sabha in 2015.
iii.The Bill was passed by the Rajya Sabha, and the Lok Sabha, ratified by States, received the assent of the President in 2016, and was enacted as the 101st Constitution Amendment Act, 2016.
iv.The GST Council was notified on 12 September 2016 and the office of the GST Council Secretariat was also established, to assist the GST Council.
v.The GST laws were implemented on 1 July 2017 and the GST Network (GSTN) was created to provide the Information Technology (IT) infrastructure for the GST system.
Features:
The GST system operates under a dual structure, comprising the:
- Central GST (CGST), levied concurrently by the Central Government, and State GST (SGST) is levied by the State Government.
- For interstate supplies and imports, an Integrated GST (IGST) is levied, which is collected by the Central Government but apportioned to the respective destination state.
Current Tax Relief in India:
The GST tax slabs range from 0% for essential items like milk, eggs, and educational services to 5%, 12%, 18%, and 28% for various other categories.
i.Previous taxes on food items (2.5 to 4%), such as wheat, rice, curd, and lassi, are now tax-free under GST.
ii.Household goods like cosmetics and furniture are now taxed at 18%, down from 28% under the old excise and VAT regime.
iii.Electronics like mobile phones, Televisions (TVs) (up to 32 inches), refrigerators, washing machines, geysers, and fans, which were previously taxed at 31.3%, now fall under the 18% tax slab.
Gross GST Revenue- June 2024
i.India collected Rs 1.74 lakh crore (USD 20.86 billion) as Gross GST in June 2024, 8% more than the same period in 2023.
ii.The gross GST collection so far this fiscal (April-June 2024) stands at Rs 5.57 lakh crore.
iii.The collection in June 2024 is higher than the Rs 1.73 lakh crore collected in May 2024. April 2024 witnessed a record-high collection of Rs 2.10 lakh crore.
iv.Rs 39,586 crore of IGST was settled towards CGST; Rs 33,548 crore towards SGST.
v.GST taxpayer base in India has been expanded to 1.46 crore in April 2024 from 1.05 crore in April 2018.
Note: Assam has become the first state in the country to pass the Constitution Amendment Bill on Goods and Services Tax (GST). France was the first country to implement the GST in 1954.
About GST Council:
As per Article 279A (4), the GST Council is an apex member committee of 33 members to modify, reconcile or to procure any law or regulation based on the context of goods and services tax .
Chairperson– Nirmala Sitharaman, Union Finance Minister of India
