Goods and Services Tax (GST)
Context: Goods and Services Tax (GST) collection rose 12.6% Y-o-Y to an all-time high of about ₹2.37 lakh crore in April, reflecting strong economic activity and March-end reconciliation of books by businesses.
Important Pointers:
➤ GST is an indirect tax — not paid directly by consumers to the government. ➤ Implemented on: 1st July 2017 via the 101st Constitutional Amendment Act, 2016. ➤ Levied on the manufacture, sale, and consumption of goods and services. ➤ Nature: Destination-based tax (tax goes to the state where the goods/services are consumed). ➤ GST Tax Slabs: 0%, 5%, 12%, 18%, 28%. ➤ Cess applicable on certain items over and above 28% (e.g., luxury cars, tobacco).
GST Council – Article 279A
➤ Constitutional body under Article 279A. ➤ Established by: President of India. ➤ Chairperson: Union Finance Minister. ➤ Vice-Chairperson: One of the state finance ministers. ➤ Members include: Minister of State (Finance) from the Centre; State Finance Ministers
Functions of GST Council
➤ Recommend: Which goods/services to tax or exempt; GST rates and slabs; Model GST laws; Special provisions for states.