<p style="text-align:justify"><span style="font-size:14px">GST is being introduced in the country after a 13-year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major milestones on the proposal for introduction of GST in India is as follows:</span></p>

<ol>
	<li style="text-align:justify">
	<p><span style="font-size:14px">In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC).</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted in September, 2009.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">In order to amend the Constitution to enable introduction of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on Finance of the Parliament for examination and report.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Meanwhile, in pursuance of the decision taken in a meeting between the Union Finance Minister and the Empowered Committee of State Finance Ministers on 8th November, 2012, a &lsquo;Committee on GST Design&rsquo;, consisting of the officials of the Government of India, State Governments and the Empowered Committee was constituted.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">This Committee did a detailed discussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC recommended certain changes in the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">The Empowered Committee in the Bhubaneswar meeting also decided to constitute three committees of officers to discuss and report on various aspects of GST as follows: -</span></p>

	<ol style="list-style-type:lower-alpha">
		<li style="text-align:justify">
		<p><span style="font-size:14px">Committee on Place of Supply Rules and Revenue Neutral Rates;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Committee on dual control, threshold and exemptions;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Committee on IGST and GST on imports.</span></p>
		</li>
	</ol>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">The Parliamentary Standing Committee submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the Empowered Committee and the recommendations of the Parliamentary Standing Committee were examined in the Ministry in consultation with the Legislative Department. Most of the recommendations made by the Empowered Committee and the Parliamentary Standing Committee were accepted and the draft Amendment Bill was suitably revised.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Based on a broad consensus reached with the Empowered Committee on the contours of the Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country.&nbsp; The Bill was introduced in the Lok Sabha on 19.12.2014, and was passed by the Lok Sabha on 06.05.2015. It was then referred to the Select Committee of Rajya Sabha, which submitted its report on 22.07.2015.</span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Major features of the Constitution (122nd Amendment) Bill, 2014 are as follows: </span></p>

	<ol style="list-style-type:lower-alpha">
		<li style="text-align:justify">
		<p><span style="font-size:14px">Conferring simultaneous power upon Parliament and the State Legislatures to make laws governing goods and services tax;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Dispensing with the concept of &lsquo;declared goods of special importance&rsquo; under the Constitution;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">GST to be levied on all goods and services, except alcoholic liquor for human consumption. Petroleum and petroleum products shall be subject to the levy of GST on a later date notified on the recommendation of the Goods and Services Tax Council;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years;</span></p>
		</li>
		<li style="text-align:justify">
		<p><span style="font-size:14px">Creation of Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, taxes, cesses and surcharges to be subsumed, exemption list and threshold limits, Model GST laws, etc. The Council shall function under the Chairmanship of the Union Finance Minister and will have all the State Governments as Members.</span></p>
		</li>
	</ol>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px">Goods and Service Tax (GST) is applicable in India from 1st July 2017.</span></p>
	</li>
</ol>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px">Before 1st July 2017, service tax applies to services and vat, excise duty, etc. apply to goods.</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px">After 1st July 2017, GST applies to trading and manufacturing of goods as well as on providing services.</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px">GST is not applicable to alcohol, crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. VAT, CST and excise duty is still applicable to them.</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px">Here is a list of taxes which are applicable before GST and is no longer applicable.</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px"><strong>Central Indirect Taxes </strong>&ndash; Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD), Special Additional Customs Duty, Central Surcharges and Cess</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px"><strong>State Indirect Taxes</strong> &ndash; VAT/Sales Tax, Entertainment Tax, Central Sales Tax, Octroi and Entry Tax, Purchase Tax, Luxury Tax, Tax on Lottery, State Cesses and Surcharges</span></p>

<p style="margin-left:48px; text-align:justify"><span style="font-size:14px">Basic customs duty and anti-dumping duty is also applicable in addition to GST in case of import of goods.</span></p>