GST day is celebrated on the 1st of July every year in India. It is a national holiday. On this day, the Goods and Services Tax (GST) came into effect from midnight of 30th June 2017 unifying more than a dozen central and state taxes into one. The GST was rolled out by Prime Minister Narendra Modi at a function in the Central Hall of Parliament attended by then President Pranab Mukherjee, Vice President Hamid Ansari, and Lok Sabha Speaker Sumitra Mahajan, and many other dignitaries.
The single biggest tax reform since Independence was earlier scheduled to be implemented on April 1 but due to a lack of consensus among states, it was postponed to July 1.
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Why we celebrate GST day In India
The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by businesses. Businesses can recover the cost of the GST paid on their inputs from the GST charged on their outputs. This makes the GST largely revenue neutral for businesses.
The introduction of the GST was a major reform of India’s indirect tax system. It replaced a plethora of taxes levied by central and state governments with a single tax. The main objective of introducing the GST was to make India’s indirect tax regime simpler, more efficient, and easier to comply with.
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First GST Day
Today marks the one-year anniversary of the Goods and Services Tax (GST) in India. The GST is a single indirect tax that was introduced on July 1, 2017, and subsumed 17 different taxes levied by the central and state governments. It was a momentous reform that aimed to make taxation simpler, fairer, and more efficient.
One year on, it is time to take stock of how the GST has fared. There are three key aspects to consider: compliance burden, revenue collection, and economic growth.
On compliance burden, there have been some teething problems but these are being addressed gradually through simplification of rules and procedures.
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History of GST in India
The Goods and Services Tax (GST) is a value-added tax charged on most goods and services sold for household consumption. The GST is paid by customers, but it is sent to the government.The GST was introduced in India on 1 July 2017, replacing several indirect taxes that were levied by the central and state governments.
The GST is administered by the Central Board of Excise and Customs (CBEC), which comes under the Ministry of Finance. The CBEC has been rechristened as the Central Board of Indirect Taxes and Customs (CBIC).
Under the GST regime, there are four tax slabs – 5%, 12%, 18% & 28%.
GST all Slabs
GST day is celebrated on 1st July every year to mark the historic implementation of the Goods and Services Tax in India. GST was introduced as a replacement for various indirect taxes that were levied by the central and state governments. It is a consumption-based tax levied on the sale, manufacture, and consumption of goods and services at a national level. The tax structure under GST comprises of 5%, 12%, 18% and 28% slabs.