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Abstract
The beginning of the presentation of GST in the nation was set down in the notable Budget Speech of 28th February 2006, wherein the Finance Minister set down first April, 2010 as the date for the presentation of GST in the nation. From that point, there has been a consistent undertaking for the presentation of the GST in the nation whose perfection has been the presentation of the Constitution (122nd Amendment) Bill in December, 2014.A common refrain in the popular discussions is what is the need for the introduction of GST? To answer that question, it is important to understand the present indirect tax structure in our country. Presently the Central Government levies tax on manufacture (Central Excise duty), provision of services (Service Tax), interstate sale of goods (CST levied by the Centre but collected and appropriated by the States) and the State Governments levy tax on retail sales (VAT), entry of goods in the State (Entry Tax), Luxury Tax, Purchase Tax, etc. It is clearly visible that there are multiplicities of taxes which are being levied on the same supply chain. There is cascading of taxes, as taxes levied by the Central Government are not available as setoff against the taxes being levied by the State governments. Even certain taxes levied by State Governments are not allowed as set off for payment of other taxes being levied by them.