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1 July: GST Day

1 July: GST Day

Second anniversary of implementation of tax reform of Goods & Services Tax as 1st July is celebrated as the "GST DAY".

First GST Day was celebrated on 1 July 2018, as to mark the first anniversary of new indirect tax regime i.e. Goods and Services Tax (GST).

GST was rolled out in intervening night of 30 June and July 1 2017 in a ceremony held in the Central Hall of Parliament.

Upcoming Reforms

1. Rationalisation of Cash Ledger System:

With regards to single cash ledger, Centre will rationalise ledger in a manner that earlier 20 heads are merged into 5 major heads. There is only 1 cash ledger for tax, penalty, interest, fee among others.

2. Single Refund-Disbursing Mechanism:

It will come into play wherein government which sanctions refund disburses all four major heads of refunds namely Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST) or Integrated Goods & Services Tax (IGST) and Cess.

3. Introduction of Composition Scheme:

As per FinMin threshold limit of Rs.40 lakh is offered of suppliers of goods as per choice of states. Thus ministry propose to introduce composition scheme for small service providers up to an annual turnover of Rs.50 lakh with a tax rate of 6%, electronic invoicing system in a phase-wise manner for B2B (Business to Business) transactions.

4. GST Appellate Tribunals:

Tribunals are being established at various state headquarters and also in area benches.

Background:

Goods & Services is an Indirect Tax levied on the supply of goods and services and which has replaced many Indirect Taxes that previously existed in India.

On 29th March 2017, Goods and Service Tax Act was passed in Parliament and Act came into effect on 1st July 2017.

It is one Indirect Tax for entire country and is a multi-stage, comprehensive, destination-based tax that is levied on every value addition.

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