Goods and Services Tax(GST) is the most
significant reform in the history of indirect taxation in the country.
Earlier a plethora of taxes were charged throughout the states in the
entire country. GST is an improvement over the previous tax system since
it centralizes the taxation system to a large extent. It is now easy
for the common man to understand the percentage of indirect taxes that
they are charged on any service. GST as a taxation system is aligned
with the government's idea of a common national market.
The
GST system was rolled out in July 2017. In total, the GST Council fixed
a percentage of taxation on 1,211 items. GST Council has put 1300 goods
and 500 services under five GST slabs, 0%,5%, 12%, 18% and 28% where
most of the items are covered under the 18% slab since the government
decided to put only luxury items under the high-end 28% tax slab, so
about 177 items in the 28% slab were moved to 18% tax slab.
Implementation
of GST has resulted in a decrease in the tax burden for the consumers.
Since the government plans on developing a synchronized national market,
GST could help in boosting the position of Indian market globally.
New features of GST
Before
the implementation of GST, the taxes levied on goods and services were
separated. The Central Government had control over the taxation on goods
manufacture and the State Government had complete autonomy in the
taxation on the sales of goods.
Post implementation of GST, both Centre and state have the power to levy and collect taxes.
Highlights of the GST rule on gas
- Post
the GST regime; the domestic cylinder prices have increased to 32
rupees per cylinder. This is the sharpest increase since the last six
years. Last time there was such a significant increase in the prices of
LPG, it rose by 50 rupees, which happened due to the rise in oil prices.
- All
households will be receiving 12 subsidized gas cylinders over the span
of one year. If someone requires more than 12 cylinders in a year, they
will be charged a GST of 18% on the additional cylinder.
- The services on gas cylinders will be charged an 18% GST on the installation, inspection and other emergency services.
- For the states which didn't charge any taxes on the LPG cylinders, the prices went up by 12 rupees and 15 rupees.
- The
LPG cylinders by 69 Rupees. Earlier, the commercial LPG cylinders
attracted taxes that amounted to a total of 22.5% which included VAT and
excise duty, under the GST regime, only 18% taxes are charged.
- LPG cylinder that cost 1121 will now cost 1052 in Delhi.
