GST Definition, Objective, Framework, Action Plan, GST Scope – Kelkar Task Force first recommended GST on implementation of the Fiscal Reforms and Budget Management Act 2004. in December 2014, the Constitution (122nd Amendment) Bill, 2014 was introduced in Lok Sabha and was passed by Lok Sabha in May 2015. Here, you will get a piece of complete information about Goods and Service Tax like – Historical Background of GST, Definition of GST, Objective of GST, Regulatory Framework of GST, Action Plan of GST Council, Scope of GST, and so on.
Definition of GST
- Goods and Services Tax (GST) is an indirect tax (or consumption tax) that is being used in India on the supply of goods and services. GST is a comprehensive, multistage, destination-based tax: comprehensive.
What is the GST invoice?
A supplier or a seller uses a GST invoice to the recipient or the buyer of goods and services. A GST invoice is a document that indicates the names of the parties involved as well as the details of goods or services supplied under a given transaction.
- Name of product
- description of product
- quantity of goods or services sold
- details of the supplier and the purchaser
- terms of supply for a product
- date of supply for a product
- price of each good sold or service rendered
- discount on product
GST invoice format:
Section 31 of the CGST Act, 2017 should have the mandatory contents of the invoice.
- Date and Invoice number
- Customer Name
- Billing Address
- Shipping Address
- GSTIN of Taxpayer and Customer (if registered)
- Place of supply
- HSN Code (Harmonized System of Nomenclature Code)
- Taxable value/applicable discount
- GST rates and total GST charged including details of applicable CGST/SGST/IGST for the item
- Signature of the supplier.
Objectives of GST
- It promotes One Country – One Tax
- It eliminates the cascading effect of Indirect taxes on a single transaction.
- GST Reduces tax evasion and corruption.
- It Increases productivity and Compliance.
- It Increases Tax to GDP Ratio and revenue surplus.
Types of GST
- Central Goods and Services Tax (CGST)
- State Goods and Service Tax (SGST)
- Union Territory Goods and Service Tax (UGST)
- Integrated Goods and Service Tax (IGST)
Regulatory Framework of GST
The government of India set up a Council named ‘GST Council’ which was constituted w.e.f. 12.09.2016, The GST Council consists of –
- (a) the Union Finance Minister (as Chairman),
- (b) the Union Minister of State in charge of Revenue or Finance, and
- (c) the Minister in charge of Finance or Taxation or any other Minister, nominated by each state government.
Goods and Services Tax (Australia)
- Goods and Services Tax (GST) in Australia is a value-added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare, and housing items) and concessions (including qualifying long-term accommodation which is taxed at an effective rate of 5.5%).
