CHAPTER 1- GST INTRODUCTION AND CONSTITUTION (परिचय और संविधान ) PART-1

                        GST INTRODUCTION AND CONSTITUTION

WHY TAX: - 

Government need fund to fulfill Increasing Development needs of country or to fulfill 

Socio. 

Economic Objectives of the country that's Why Government Impose tax.

WHAT IS TAX: -

Tax is a Compulsory Extortions of Money made under an Act.

TYOE OF TAX: -

It can be classified into two parts as DIRECT TAX & INDIRECT TAX. Where burden 

of tax borne by the person on whom it is levied then the tax will be DIRECT TAX and 

where burden of tax shifted to another person i.e. ultimate consumer then it will be 

called as INDIRECT TAX.

FEATURES OF INDIRECT TAX: -

                           I.          It is an IMPORTANT SOURCE of Revenue to the GOVERNMENT

                          II.          It is levied on GOODS and/ or SERVICES.

                        III.          Tax burden is Shifted to another person.

                        IV.          INDIRECT TAX dose not pinch directly to the END user.

                         V.          Changes in the Rates of INDIRECT TAXS directly affects inflation.

                        VI.          INDIRECT TAX is Regressive in nature i.e. Rate of tax will be same for Rice & Poor Consumer.

                      VII.          It promotes social welfare by imposing higher tax Rates on Demerits Items e.g. TOBACCO.

                                                 

           

                                  

                                                PRE & POST GST: -

1.---Before Introduction of GST - there were lots of INDIRECT TAXS e.g. Central Excise 

Duty VAT, CST, Services TAX, Entertainment TAX, Octroi etc. which leads to 

multiple Taxes multiple Compliances, Multiple Laws, Cascading, Double Taxation etc.

2.---To overcome All their demerits GOVERNMENT Introduced GST In INDIA w.e.f. 

01-07-2017. Now there will be one LAW, All Compliance at one Place, No Cascading, 

No Double TAXATION,

3.--- Moreover All MANUFACTURERS, TRADERS & SERVICES Provided will be 

Called on " SUPPLIER" and Ail BUYER/ CUSTOMERS will be called as 

RECIPIENT and 

4.--- INTERNATIONAL TRANSACTION will also be called as 'INTER STATE 

TRANSACTION"