The Constitution of India provides comprehensive Lists bifurcating the powers and duties between the Centre and States Government. Therefore, both the Central and States Government need funds for discharging their duties and responsibilities. Central government has the authority to make laws and levy taxes in respect of matters enumerated in List I of the Schedule … Continue reading LEVY & COLLECTION OF GST

Supply is a taxable event for the purposes of taxation under GST. The obligation to pay tax arises when goods or services are supplied. Hence, establishing whether or not a transaction comes under the scope of supply is critical in deciding whether or not GST is leviable. There was no concept of supply under the … Continue reading SUPPLY – A TAXABLE EVENT UNDER GST

Under the earlier Indirect Tax regime, various taxable events were present for different levies depending upon the nature of tax. The four major constituents of earlier Indirect Tax structure and taxable events thereof can be summarized as under: For Excise Duty- the taxable event was Manufacture / Deemed Manufacture, which can be seen under Entry … Continue reading PREVIOUS TAXATION STRUCTURE VS GST STRUCTURE IN INDIA

The previous indirect tax regime created various complexities, which forced the Government to overhaul the earlier indirect tax system and introduce a new tax system throughout India with an aim to curb the cascading effect of other indirect taxes. There were various shortcomings under the previous regime, for instance, cascading effect, multiple statutes, multiplicity of … Continue reading RATIONALE BEHIND THE IMPLEMENTATION OF GST

The idea of moving towards the GST was first mooted by the then Union Finance Minister (Mr. P. Chidambaram) in his Budget for 2006-07. It was to be introduced from April 01, 2010. February 2006: Mr. P. Chidambaram, the then Finance Minister, stated that the government's medium-to-long-term objective was to adopt a unified GST structure … Continue reading ORIGIN OF GST LAW IN INDIA