“JUNE GST REVENUE GROWTH HITS THREE-YEAR LOW, NO OFFICIAL STATEMENT”
Why in the news?
- June’s GST revenue growth slowed to a three-year low of 7.74%.
- No official statement released by the Finance Ministry on GST collections.
About Goods and Services Tax (GST):
- GST was introduced through the 101st Constitution Amendment Act, 2016.
- The GST has subsumed indirect taxes like excise duty, Value Added Tax (VAT), service tax, luxury tax etc.
- Supply-side Applicability: GST applies to the supply of goods or services, replacing older taxes on manufacture, sale, or provision.
- Destination-based Taxation: It follows a consumption-based taxation principle rather than origin-based.
- Import Treatment: Imports are treated as interstate supplies, subject to Integrated Goods & Services Tax (IGST) and applicable customs duties.
- Mutually Decided Rates: GST rates (CGST, SGST, IGST) are decided jointly by the Centre and States through the GST Council.
- Multiple Rates: Initially, GST had four rates: 5%, 12%, 16%, and 28%, determined based on item classifications by the GST Council.
source:researchgate
Key Facts about GST Council:
Functions:
Associated Article: https://universalinstitutions.com/goods-and-services-tax/
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