IMPACT OF GOODS AND SERVICE TAX ON REVENUE OF THE STATE.
Introduction.
The idea of GST was initiated under the leadership of Atal Bihari Vajpayee in the year 2000.The government of India has introduced constitutional amendment bill for GST in lok sabha. Report of GST was prepared in the meeting of empowered committee on 20th of November 2007, after certain modifications the final version was prepared and sent to the govt of India on 30th Of April 2008. It was decided to be introduced from 1st of April 2010 but due to the fear of loss of revenue to states, and they wrote to finance committee that they were not ready to introduce GST and this is the reason behind the delay. Bill was introduced in the lok sabha by Arun Jaitley the present finance
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GST will Unifi and integrate these tax reforms to a common base. This tax regime aims to convert the country into a integrated market by eliminating various taxes and replacing them with one tax.
GST has dual structure that is central component levied and collected as the central goods and service tax(CGST ) and service taxes on goods and services that move from one state to another is state goods and service tax (SGST). Once the GST is introduced in states the states complain about the loss of revenue, so there are provisions made to compensate for it. The compensation may extend upto 5 years. The third main component of GST is dual GST and that is the expected model of GST in India.
GST is levied at the rate of 10% it is ultimately paid by the end users of goods and services. Certain types of supplies are GST free like fresh foods and medical supplies. Certain real estate sales are subjected to GST that is sale of commercial property. Producers of product or service pay tax on the materials required for production and they paid tax is set off when the consumer pays tax on the purchased
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It is beneficial to the consumers and the parties in the supply chain. But when we see its impact on state revenue many states fear that they will lose revenue as entry tax or octroi is absorbed but the bill assures that if any losses incurred by states will be compensated for the first five years but some states want to be compensated for ten years. States have been assured 100% compensation for their losses, first three years, and 75% in the fourth year and 50% in the fifth year. The finance ministry expects that not all states will need compensation for five years, particularly consuming states may see their revenue increase with the implementation of GST. The council initially proposed to have 27% as GST rate in India but Arun Jaitley mentioned that it would be very high and proposed
They required them to pay this tax on every piece of printed paper they used--ships papers, legal documents, licenses, newspapers, magazines, and other publications. Even playing cards were taxed! The colonies were supposed to buy paper from Britain that had an official stamp on it which showed they paid the tax, hence it became known as the Stamp Act. The tax collected from the Stamp Act also allowed the British to pay for the French and Indian War.
I told you this is taxation without representation. They think they can just become more strict and demanding out of nowhere? We will show them. We must configure against the parliament. That is the fastest way to ban this act.
The Stamp Act of 1765 had not been a first time attempt on taxation of the Americans. The Parliament had passed the Sugar Act and Currency act the year before. Since the tax was gathered at ports, it was easily avoided. Once Parliament passed the Stamp Act in March of 1765, things started to change.
This act required that many documents such as licenses, diplomas, contracts and even playing cards to be printed on embossed paper that had a tax on it. This act was the very first attempt to tax the colonists directly for activities that occurred solely with the colonies themselves. After the French and Indian War the British national debt skyrocketed and the Prime Minister was eager to pay it down before the government was bankrupted.
Under the molasses act colonial merchants had been required to pay a tax of sixpence per gallon on the importation of foreign molasses,but because of corruption,they mostly evaded the tax and undercut the intention of the tax that the english product would be cheaper than that from the french from west indians.this hurt the british west indies market in molasses. The colonies were upset because they were the only ones getting taxed and not the rest of britain. Another tax was passed,however this placed taxes on many items. This tax is called the stamp act.the stamp taxes newspaper,lines and colonial paper product.these are all paper items.if you’re wondering why all these taxes are getting placed,its because the king was trying to pay off all the war debt, however after the stamp act was passed a series of resolution are published stating the stamp act violates the right of colonies.
(Document 1) Many colonists supported this idea and refused to pay these taxes. They began to organize boycotts that protested the unfair tax laws. The Stamp Act was eventually repealed when the protests got out of hand, but Britain was definitely not done taxing the
(The Tea Act) Passing the Tea Act imposed no taxes on colonies. Due to boycotts and protests, the Townshend Act was soon repealed taxes on glass, oil, paint, and
While this may have become the norm for the colonies, what was different about this particular tax is that Townshend decided to remove the tax in Britain so that way it would “offset with the new revenue to be collected in the colonies.” (LEP,5-3a) It is obvious that the motivation of this was impure, the preamble stated his
Along with the newly levied taxes on the colonies, the British proposed the Stamp Act in 1765. Instead of being just an import tax on trade goods, the Stamp Act was a direct tax on the colonies. It required that all printed materials, including legal documents, bear a stamp that was purchased from British distributors. The colonists strongly believed that only their local representatives should be able to collect a tax this direct. They ended up forming the Stamp Act Congress.
This act was passed by the parliament of Great Britain. Which also accompanied the repealing of the stamp act. This stated that the parliament still had power over the colonists. Parliament taxed the colonists for revenue in the sugar act. This was a reason why the slogan taxation without representation was made.
In the following years came revisions in the government; the
The Stamp Act was passed in British Parliament on February 17, 1765 and received Royal Assessment on March 22, 1765. The Stamp Act was proposed by Prime Minister George Grenville and was passed without debate and it would take effect in November of that year. Prior to the Stamp Act there was a war between Great Britain and France. Though Great Britain won the war, it came to a cost of a deep debt. British Parliament recognized that the colonies were lightly taxed and felt that they should pay more thus came the stamp act which enforced all colonial citizens to pay a stamp duty or tax on all official papers from official
Unfortunately, the United States of Representatives did not pass the legislation until January 31, 1865 after president Abraham Lincoln made it his number one priority in his 1864 re-election campaign.
The graduated income tax was introduced by the populists. The graduated income tax made it so the more money one made the more taxes they had to pay. The populists also brought the direct elections of senators. Before this was introduced each state's legislatures would choose the senators. Another policy adopted from the populists was the Australian ballot or secret ballot.
For a will, the sugar-sweetened drink has been taxed and are improving people diet and there is a lot of research on junk food is taxed and how it can also improve people diet. In places were sugar drinks have been taxed the person paying for there drink is taxed but for junk, food researcher has shown that taxing the people will have no impact. If people are not taxed than manufacturers should be taxed, and studies have shown when manufacturers are taxed than they are more likely to increase prices which will stop people from buying junk food and look for healthier food. Junk food has caused an increased rate of obesity and one way the government is trying to fight this is by having fat taxes which tax just unhealthy food and sugar-sweetened drinks. When junk food is being taxed than people will more incline to buy healthy food and drinks, this is only possible when the manufacturers are taxed.