Deliberating GST with AISECT University

The Goods and Service Tax (GST) came into existence with the formal approval of the President of India in the year 2016. The 122nd constitutional amendment Bill became the 101st constitutional amendment Act last year. The GST is on track to get implemented before the deadline of July 1st, 2017. The whole taxation structure all over India will be changed after the successful implementation of the GST. 

It is a hot topic to be discussed among the commerce students as the GST will bring a significant impact on the economy both at micro and macro level. The students have to understand the GST quite reasonably, as it would bring a drastic change in the system of indirect taxation. AISECT University has embraced the opportunity to make their students and faculties well educated about the GST and provided them the opportunity to deeply analyze and discuss the impact of GST post implementation. The Commerce Department of AISECT University had hosted the faculty development program regarding the GST. 

Details of GST explained by the Dignitaries:

1) The Kelkar Task Force first proposed the Goods and Service Tax on Direct and Indirect Taxes which was chaired by Mr. Vijay Kelkar, Advisor to Minister of Finance and Company Affairs, the Government of India.

2) As the proposal of advancing the GST also involved the restructuring of state indirect taxes, the responsibility of designing the road map was assigned to the Empowered Committee of State Finance Ministers.

3) To introduce the GST all over India, it was mandatory to assign the central government the powers to levy indirect taxes, which was earlier allocated to the states by the constitution. Hence, a constitutional amendment was needed to bring the GST into practice.

4) The implementation of the GST will replace all the existing systems of the indirect taxes.

5) As India follows the federal form of government, there would be two types of GST that would be levied simultaneously that are- Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST).

6) By the provision of the GST, the problem of double taxation would be resolved and which will lead to the lowering of general prices. It would help the Reserve Bank of India (RBI) in holding the inflation within the targeted limits.

7) The onset of GST will remove the excess tax burden on the people and will simultaneously increase the revenue base of the government.

Functioning of the GST explained by the Dignitaries:

1) In the process of execution of GST, the intermediate taxation will be invoiced as input tax credit. Hence, the price of the goods will come down.

2) The tax credit levied will be of equal percentage to both CGST and SGST and will be charged at the same time.

3) Finally, the reduced tax burden will be born by the end customer after the goods or services will be passed through all the value addition stages.

The program benefited the students and the faculties to the core and provided them a start to look more into the aspects of GST. With the help of the program, now the students of AISECT University will be able to analyze the impact of GST post implementation.

Report this Page