Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 33 Indirect Taxation Notes
→ Indirect Tax is levied on the goods and services. It is collected from the buyers by the sellers and paid by the sellers to the Government. Since it is indirectly imposed on the buyers it is called indirect tax.
→ Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and services.
→ Traders having annual turnover, within a state, below 20 lakhs are exempted from GST.
→ GST Act was passed on April 12, 2017. GST came into effect from 1st July, 2017. It is the single biggest tax reform since Independence.
→ Several Countries like Russia, Canada, Australia, Singapore, China, etc. have already introduced GST.
→ The kinds of GST are: Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UGST), Inter-State Goods and Services Tax (IGST).
→ CGST means Central goods and service tax to replace the existing tax like service tax, excise, etc. and It is levied by central government.
→ SGST means State goods and service tax, replace the existing tax like sales tax, luxury tax, entry tax, etc. and it is levied by the state government.
→ IGST refers to the Integrated Goods and Services Tax and it is a combined form of CGST and IGST and it is levied by central government.
→ The Central Government shall have l/3rd voting power and all State Governments shall have 2/3rd voting powers.
→ GSTN facility will reduce multiple record keeping, lesser investment in man power and resources and improve efficiency.
→ All interactions will be through common GSTN portal and will ensure corruption free administration.
→ Several Economists says that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the, cost of new homes and reduce demand by about 12 percent.
→ Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.