The Goods and Services Tax (GST) Day is annually observed across India on 1st July. The day marks the commemoration of the unprecedented reform of Indian taxation – Goods and Services Tax (GST).
The day is observed by the Central Board of Indirect Tax and Customs(CBIC) across India.
The year 2021 marks the observance of the 4th GST Day.┬а
Background:
i.The Goods and Service Tax (GST) Act was passed in the Parliament (both Lok Sabha and Rajya Sabha) on 29th March 2017 and came into effect on 1st July 2017.
ii.The First GST Day was observed on July 1, 2018.
About GST in India:
i.The Goods and Services Tax(GST) is an indirect tax which has replaced various indirect taxes in India such as the excise duty, VAT, services tax, among others.
ii.GST is a single domestic indirect tax law for the entire country.
Components of GST:
There are 3 taxes applicable under GST,
- CGST(Central Goods and Services Tax) – tax collected by the Central Government on an intra-state sale.
- SGST(State Goods and Service Tax) – tax collected by the state government on an intra-state sale.
- IGST(Integrated Goods and Services Tax) – tax collected by the Central Government for an inter-state sale.
Advantages:
i.The GST has eliminated the cascading effect on the sale of goods and services which has impacted the cost of goods.
ii.The GST related activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal.
