Concept of GST Full Form:
(Goods and Services Tax)
GST Full Form as name includes Goods like people consumed in daily lifestyle and services which were needed, every one.
GST Full Forms were meaning as follows:
- Value Addition Tax
- Destination Based Tax
- Multi-Stage Tax
- And also, it says as Consumption-Based Tax.
Let me remark you, everyone, that full form of GST is not Goods and Service Tax. We considered it wrong; it writes as Goods and Services Tax.
Structure of GST:
GST includes all combinations of taxes, which was previously the Government of different countries imposed as per the country structure like federal or Union.
Let me clear that France is the country having only one government that has the power to impose all laws under all jurisdiction based upon criteria. So there it is said that there is a Union Structure Government.
Another recent best example we observed, is about the most prominent Democratic country “India,” where recently GST imposed under high pressure and protest faced from their native people and other opposition parties.
Behind this protest, namely, the reason is a complication in GST because of his structure. India Biggest Democratic Country where state level and central level both governments is work together. That means India is having the Federal structure of GST.
Note: – GST structure based on Federal and Union governments.
Foundation and Invention of GST:
The based foundation of GST and invention can be observed in many years back in the middle of a decade of 1950-1960.
The invention made by the French Tax Official since 1950 in France. GST where comes first since 1954. This beginning gathered approx. One Hundred Sixty countries.
But most of the countries not having GST meaning as GST full form they were use VAT (Value Added Tax).
Note:– France was the first GST country known as VAT.
A brief study of different countries about GST and their full form:
As early discuss above, 160 countries were adopted GST tax system and by the going on successfully implemented also so many of the above as follows:
Many times in my text on various stages told about France’s first GST country. France is a Union country; there are no state governments, so all laws and rights authorized by only one government. So the structure of GST is also Union.
GST naming (GST full Form) popularly known as VAT – Value Addition Tax, as previously discussed.
GST rates are specifically presented in four layers – 2.1%, 5.5%, 10% and 20%.
GST/VAT at the highest rate in France is applicable at the 20% rate(Standard Rates).
Government officials impose multiple taxes for reducing side effects from these taxes like smuggling major power government took the decisions.
Canadian pattern of GST mainly forms since 1991 merge with excise duty. It was present on the new base version of GST by separating their taxes of Manufacture’s Sales Tax (MST) applicable on the rate of 13.5%
Newly set up GST with subsumed all taxes in HST – Harmonized Sales Tax, which later converted into GST.
It’s covered all goods and services with a few exceptions. i.e., residential rent, financial services, and medical services.
GST, at the highest rate in Canada, is applicable at the 15% rate(Standard Rates).
Note:- India has adopted a dual pattern of GST like Canada.
The United Kingdom –
Presentation of GST in the UK was undergoing in 1973, instead of their central taxes like Purchase Tax. Large scale revenue by this system, which benefited to Government.
The applicable rates of GST in the UK from 4 January 2011, considered as Standard Rates is 20%.
Australia also levied with GST means the value-added tax on their consumable goods and services.
It started in July 2000 instance of Wholesale Sales Tax. GST is present first by Howard Government.
Rates are applicable by the Government at 10% Standard Rates.
As in the past of Singapore’s tax system, two taxes levied at a much higher price of 40%.
This difficulty realizes early by replacing in indirect tax and soon introduced with Value Added Tax.
As the period passes, Vat comes nearer, and since April 1994, the tax gets a breath in Singapore.
Singapore Customs Department has a charge to accumulate GST, which not based in Singapore on a consumption basis.
Some conditions are also applicable to the exemption of transactions between selling and purchase of residential properties and even precious metals like gold, platinum, etc.
The highest rates applicable to GST in the country are there at 7% (Standard Rate).
INDIAN GST FORM
India is the biggest country of broad Democracy were lots of taxes found because many of the states, local governments, and municipality made combined work, too large structure by regions are there we can see.
Before GST implementation as even we not imagine that in India, almost Seventeen Taxes are used by the Government to earn revenue.
All those taxes subsumed by only one GST entered in the Constitution of India.
For the imposition of the GST Government gave too many efforts for it ultimately, Parliament passed almost Thirty-Five Acts in both houses (Upper and Lower Houses).
This effort does not stop in one turn, but also Government realized to amend the Constitution of India, which included 395 Articles, 22 parts, and 8 Schedules is the longest Constitution ever.
Constitution of India:
Founder of Constitution:
The most significant achievement is their Government successfully amend the Constitution of India (Bhartiya Savidhan)
Wrote by respected Dr. B.R. Ambedkar
Formation of GST:
GST is crucially embarked by Government on 1 July 2017 by inserting Article 246A with the introduction of the Constitution (101st Amendment Act, 2016).
As per the new amendment of the Constitution of India, 1 July 2017 is the most significant change in the history of India. Because major protest faced by a government against people and opposition party while BJP imposed under the guidance of Honourable Prime Minister Narendra Modi.
Formation in Jammu & Kashmir:
Gst forms in all over India on 1 July except Jammu and Kashmir. Because of conflict in between J &K about his special status, it delays in implementing.
GST positively present in Jammu and Kashmir on 7 July 2017 GST allowed in J&k after the consent of Honorable Chief Minister Mehbooba Mufti.
At present, GST similarly applicable all over India, including Jammu and Kashmir and other acts also.
Brief Meaning of GST:
Cooldown guys, at this stage, we much aware of GST but, let me remind back as I said at the starting of this blog post a small introduction we made about GST full form.
There is detail discussion as per below:
Value Addition Tax (VAT) –
The essential full form considered in GST and its meaning includes in as it is, i.e., Value added in every stage of the process where demand and supply get together.
In short, when raw material manufacture and then after process goes through selling in warehouses, later to wholesaler and the retailer at last to the consumer at this every stage small amount bind to pay by every person who was passing through this chain. It is called a value-added tax.
It designed as which bases on the tax burden levied on consumers or who are demanding goods of services mean to be destination-based and multi-stage taxes.
On each stage, tax is levied & collected by the Government.
Purpose of GST:
As we previously learn about GST is the most significant reform in India. It was a source rooted in far previous time ago. The main reason for the implementation of GST in India to subsumed all other taxes and give them a one-way revenue earn system.
Taxes destroyed by GST:
(Previous Taxes Before CGST)
- Central Excise Duty
- Service Tax
- Custom Duty
- Surcharge and Cess
(Nine taxes which are subsumed in SGST Form)
- State VAT
- Central Sales Tax
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Sales Tax
- Luxury Tax
- Lottery, Gambling Tax
- Surcharge and Cess
Further Explanation as per below:
Import and Export happen in two different countries; there is a government levy some taxes to put entered in the country.
- Import and Export means:
Some goods and services transacted between two or more countries.
- Act for the customs duty:
Custom duty having its particular act “Custom Act of 1962” and as per showing a large number of transaction rates are mention in the specific and separate act “Customs Tariff Act, 1975.”
High security is maintaining by the Government for secure transactions.
Note: – At the present date, custom duty and GST both simultaneously applicable to Imports and Exports, i.e., Double Taxation.
Excise Duty is also applicable to goods on border areas where transacted. It is also actively existed in India at the present date. Therefore, no GST applicable. In the future, it may be changing.
State VAT implied by different states of the country in India. The committee under the Chairmanship of Dr. Ashim Dasgupta justified the implementation of VAT.
Service Tax was liable by the Finance Act, 1994. But enforcement on 1 July 2012 charging section 66B introduce in Finance Act, 2012.
Service Tax was applicable all over India except Jammu and Kashmir.
- Rates for service tax:
Rates, as defined by the Government of India, when Service tax introduced at the rate of 12%.