Goods and services tax was mooted in 1986 in India. The Constitution (One Hundred and First Amendment) Act, 2016 has finally turned GST into a reality. Goods and services tax is the latest revolutionary reform in indirect taxes in India. GST as a unified tax subsumes several taxes and levies imposed both by the Central Government and State Governments in relation to goods or services.

Objectives of GST in India

(i) Rationalize of indirect tax regime by subsuming several central and state taxes/levies;

(ii) To tax goods and/or services alike;

(iii)Implement Dual GST model with concurrent powers of both Central government and State Governments to levy and collect taxes as well administer GST;

(iv) Three laws perceived to implement GST viz., Central Goods and Services Tax Act, Integrated Goods and Services Tax Act, and State Goods and Services Tax Act(s);

(v) Constitution of Goods and Services Tax Council with appropriate representation of States and Central government to decide all major issues relating to GST;

 (vi) Compensate States for loss of revenue due to implementation of GST.

Futures of Dual GST Structure in India

(1) Destination based tax

(2) Concurrent levy and administration

(3) Unified tax with two components

(4) Subsumes state and Central taxes

(5) HSN based goods classification

(6) Taxable event , supply treats goods and services alike.

(7) Seamless tax credit throughout supply chain

(8) Composition scheme for small business

(9)  Low rate of tax on essential goods and high rate on luxury goods

(10) Universal rates of tax throughout country

(11) Paper less business transaction with use of internet