GOODS AND SERVICES TAIN INDIA BASIC CONCEPT AND FEATURES

ARTICLE REVIEW

Submitted By:

SHILPI SINGH

17040142023

B.B.A.LLB (2017-2022)

Submitted To:

PROF. ABHISHEK SRIVASTAVA

ALLIANCE UNIVERSITY
The author Hajera Fatima Khan, discusses the essential ideas and features of Goods and Service
Tax (GST) and the ensuing effect on economy, toward the start of the article there was a
verifiable based help of the implemintation of GST in the general public offering that value
added (TAX) was a significant improvement over the pre-existing central excise duty at both
central level and furthermore at sales tax system at the state level. From The empowered
committee of the state finance ministers it was clarified that there would be Dual GST in India
were both the central and state has the power to levy taxes on goods and services. The
implementation of GST would be a very fascinating approach in the field of indirect tax reforms
in India. GST has rearranged the overflow or double taxation in significant manner by
amalgamating everything into a single tax.

The author expressed that goods and services tax is a charge imposed on goods and services
which are charged at each retail location or delivering of the service. Such GST could be on the
whole products and services or there could be some excluded class of products or services or
we can say is all the negative list of products and services on which GST is not imposed. GST is
an indirect tax in lieu of tax on goods and tax on services. The Goods and Service Tax is much
the same as the State level Value Added Tax which is imposed as tax on good sold. GST will be a
national level value added tax applicable on the goods and services delivered. A most significant
change in overseeing the Goods and Service Tax will be that the tax occurance at the point of
sale as against the present system of point of origin. As indicated by the Task Force under the
13th Finance Commission, GST, as a very much planned value added tax on the goods and
services which is the most exquisite technique to wipe out the distortions and to tax
consumptions.

In the first part of this article, the author introduced the reasons or essentially the goal to go for
the GST path was to encourage the consistent credit past the whole entire supply chain and all
across States under a common tax base which is the tax imposed on the goods and services,
which will likewise be collected or imposed at each point of the sale or the arrangement of
services, in which at the time of sale of good or offering the services the seller or can claim the
input credit of tax which the person has paid while purchasing or buying the goods or by
obtaining the services. This is so in light of the fact that they incorporate the GST in the cost of
the goods and services and they sell and will guarantee the credits for the most GST included in
the cost of goods and services they purchase or buy. The expense of GST is borne by the last
purchaser who toward the end can not claim the GST credit or the information credit of the tax
paid by the buyer.

Furthermore, the author incorporated the main features of GST where the first one deals on
the Applicability On supply side where GST is relevant on 'supply' of the goods or the services as
resistance of the old idea on the production of goods or on sale of goods or on provision of
services. The subsequent one arrangements with Destination based taxation GST is based with
respect to the guideline of the objective based utilization of taxation as against to the current
guideline of source based tax collection that is to the specific objective of the goods and
services.

Thirdly the Dual GST where the double GST which the Center and the States all the while
imposing the taxes on a common base so the GST which is being forced by the Center is called
the Central GST (In short CGST) and the tax which is being forced by the States is called State
GST(SGST) the import of goods and services would be treated as an inter state supplies and
would be subject to the integrated good and service tax (IGST) with an addition to the
applicable custom duties.

Fourth one the GST rates which to be commonly choose all the three CGST, SGST and IGST are
being forced at the rates to be commonly settled upon by the Center and furthermore the
States together. The rates are being told on the suggestion or the direction of the GST council
of the state. Where the article likewise centers around the Multiple Rates At the start the GST
was being forced or required at four rates that is as per the following: 5%, 12%, 16% and 28%.
The timetable or list of things that would fall under these multiple slabs are worked out or are
being cared for by the GST committee. Besides, the Act was conceived for the motivations
behind assisting the Advantages of GST where the author clarified the Elimination of the
Cascading (tax on tax) Tax Effect the author referenced that GST is applicable at each stage
where an item or the services recieve the value in addition. It accompanies the input tax benefit
with the help of which the manufacturers and the service providers can offset the input tax
which they have already paid while paying the output tax. So while taking the thought the
customary 'tax on tax' system or the falling impact of tax collection is successfully wiped out by
Goods and services tax. The author additionally clarified the Lesser Compliance where in prior
days the direct duties, for example, the VAT, the services charge and the extract each necessary
a different return filing and compliances. For instance, a large portion of the organizations were
needed to document their extract restores, the services charge returns, and the VAT returns
independently consistently. So the benefits of GST, lesser consistence is one of the main ones.
Under the new duty system where there is just a single and brought together GST return to be
filed. The author with all the clarification to the benefits of the GST additionally gave detail data
on the Prevents Tax Evasion where the GST being an online tax system it naturally adds the
more straightforwardness to the taxation Aside from this the manufacturing and the services
suppliers are simply ready to profit by the information tax credit facility when the input and
output invoices coordinate with one another. Tax evasion has kept on being the serious issue
for the government.
The author narrows down the article by concluding that the implementation of GST was a major
change which had both negative and positive impact on the society, though it made the
taxation difficult for small business. Since understanding GST was another challenge faced by
the small scale business and they were pushed into a position where they needed professional
advisors for paying the taxes. India will become a single, market where goods can move freely
and there will be lesser compliances to deal with in the business.