A group of ministers was formed to further refine the GST rates In which he proposed that there is a need to impose more tax on products like cigarettes, tobacco, cold drinks etc.
Gom (group of ministers) said that there should be tax slabs up to 35% on these products After the GST council meeting, it will be decided how much tax should be levied
After this news, there was fluctuation in the shares of companies manufacturing these products.
When was GST introduced?
GST was implemented from 1 July 2017 .It was implemented after several meetings of the Finance Ministry.
what is GST?
The full form of GST is Goods and Services /simple Tax .GST is a tax on goods and services which is applicable uniformly everywhere in India There is no need to pay different taxes at different places at one product . Because there will be imposed only one time tax on that products or services and the central government collects this .
During the tenure of which Finance Minister was GST implemented?
When GST was implemented, the Finance Minister was Nirmala Sitaraman . Presently also she is leading the Finance Ministry.
why Gst introduced?
Before the implementation of GST, many types of taxes were levied on goods in India, which caused many problems to companies.Some of the taxes are as follows ;
VAT
services tax
the excise duty etc.
These taxes created a lot of complexity GST was introduced so that companies get easy facilities and management is better So that there is no confusion about tax at different places again and again
How many tax slabs
GST council has implemented many tax slabs ;
0 percent
5 percent
12 percent
18 percent
28 percent – This tax is imposed on luxurious items
How it works
Due to the variety of goods, different tax slabs have been created.Some products are used by common people and are used in daily household use, so keeping them in mind, lower tax has been imposed
But there are some products which are expensive and higher taxes have been imposed on them.
Individuals have to pay tax according to their income
There are implemented highest tax on the luxurious products
In short:
Goods tax;
cheaper items attract less tax and as the price of the item increases, the tax slabs change and on some items the tax is kept fixed.
Services tax;
As the income increases, the tax slabs will also change accordingly.
