GST stands for Goods and Services Tax. It is a destination-based tax. It is levied on the supply of goods or services or both in India. It can be called the Single biggest tax reform undertaken since Independence. It eradicates tax on tax and is a boost for MAKE IN INDIA. In simple words, GST is a VAT on the supply.
India has adopted the dual GST model i.e. Centre and States will simultaneously tax goods and services. Centre has the power to tax intra-states Sales also and States will be empowered to tax services also.
Article 366(12A) of the Constitution as amended by 101st Constitutional Amendment Act, 2016 defines the Goods and Services Tax (GST) as a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption. Further, as per Article 279A (5) of the Constitution, five petroleum products viz. petroleum crude, motor spirit (petrol), high-speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included in GST. Additionally, though, electricity has not been explicitly excluded from GST but it is considered as Nil rated in GST and continues to be charged with pre-GST taxes i.e. electricity duty by the State Governments.
These are the conditions required for becoming a GST practitioner:
They should be a Citizen of India
They should be of sound mind
They should be not be adjudged as an insolvent
They should be not be convicted of an offence with imprisonment of 2 years or more
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