What is GST Act 2017- It is an indirect tax throughout India to replace taxes levied by the central and state governments. It is introduced in the Constitution article (One Hundred and Twenty-Second Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The Central government had passed four sets of GST Acts in the Budget session this year. They are Central GST Act 2017, Integrated GST Act 2017, Union Territory Act 2017, Compensation to State Act 2017.
Some details of the decisions taken by GST Council- The Council has divided taxes into four tax rate structure of 5%, 12%, 18% and 28% for GST. A separate tax would be imposed on certain goods such as luxury cars, cold drinks, pan masala, alcohol and tobacco products, over and above the GST rate of 28% for payment of compensation to the states.
GST is considered to be the biggest step taken by any government in India since independence. It will help realize the goal of “One Nation-One Tax-One Market.” GST will benefit all the stakeholders – industry, government, and consumer. Experts believe that implementation of GST will lower the cost of goods and services and it will also boost the Indian economy and make Indian products and services globally competitive and even boost initiatives taken by BJP government like ‘Make in India’.
According to Ministry of Finance, “GST will make India a common market with common tax rates and procedures and remove economic barriers.” Under GST, a normal taxpayer would have to file three Income Tax returns in a month and one annual return Annually. There are some separate Tax returns for a taxpayer registered under the composition scheme, a taxpayer registered as an Input Service Distributor – a person liable to deduct or collect the tax.
After the implementation of GST, all transactions will be done through Electronic mode. By this, it will minimize the efforts done by the tax officials. The government will provide the facility of auto-populated monthly returns and annual return.
The taxpayers will be granted refund within 60 days and provisional release of 90% refund to exporters within seven days. Another facility like interest payment refund is not sanctioned in time it will be directly credited to bank accounts. Anti-profiteering provisions for the protection of consumer rights have also been included in the Acts.
Watch: Steps How to file under GST