• UGI USER
  • Jul 02, 2024
  • 4 Likes
  • 0 Comments

“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:

  • Established after the Constitutional (122nd Amendment) Bill was passed in 2016.
  • Composition: Joint forum of the Centre and states.
  • Constitutional status: Formed under Article 279A (1) of the Constitution.
  • Members: Chaired by the Union Finance Minister. Includes Union Minister of State (Finance) from the Centre. Each state nominates a finance or taxation minister or another minister as a member.

Functions:

  • Recommends on GST-related issues such as goods and services subject to or exempt from GST.
  • Proposes model GST laws and decides GST rate slabs.

 

Associated Article:

https://universalinstitutions.com/goods-and-services-tax/