<p>GST stands for Goods and Services Tax. It's a multilevel taxation system that is comprehensive in nature and applies to the sale of goods and services in a country. </p><p>The aim of this taxation system is to curb the cascading effect of other indirect taxes. It is applicable throughout India.</p><p>India imposes GST on the supply of specific products and services. It was implemented to replace a variety of previous indirect taxes, including service tax, excise duty, VAT, purchase tax, etc.</p><p>In December 2023, GST collections jumped 10 per cent to about Rs 1.64 lakh crore compared to Rs 1.49 lakh crore in the same month in 2022, the finance ministry informed recently.</p><p>During the April-December 2023 period, gross GST collection witnessed a robust 12 per cent growth, reaching Rs 14.97 lakh crore, as against Rs 13.40 lakh crore collected in the same period of the previous year, the ministry said in a statement.</p><p>The GST structure was implemented by the Modi government in July 2017. It has a significant impact on the budget allocation by the Union Finance Ministry.</p><p>With Finance Minister Nirmala Sitharaman scheduled to present the interim Budget in the Lok Sabha on February 1, 2024, we take a look at the taxation system's role in the budget.</p><p><strong>Role of GST in Budget</strong></p><p>Ever since a single uniform tax structure was introduced, the composition of the tax component of the budget has changed, with the GST structure aimed at dismantling the fiscal barriers among states.</p><p>The Centre and state used to levy multiple taxes such as excise duty, octroi tax, VAT, entry tax etc prior to the implementation of GST, all of which have been subsumed under GST. </p><p>Earlier, the Centre used to collect only service taxes. But, under the uniform direct tax structure, both state and the Centre collect identical taxes on services and goods.</p><p>With 18 per cent GST levied throughout the nation, the Centre and state receive 9 per cent tax each named CGST and SGST, respectively.</p><p><em>(with PTI inputs)</em></p>
<p>GST stands for Goods and Services Tax. It's a multilevel taxation system that is comprehensive in nature and applies to the sale of goods and services in a country. </p><p>The aim of this taxation system is to curb the cascading effect of other indirect taxes. It is applicable throughout India.</p><p>India imposes GST on the supply of specific products and services. It was implemented to replace a variety of previous indirect taxes, including service tax, excise duty, VAT, purchase tax, etc.</p><p>In December 2023, GST collections jumped 10 per cent to about Rs 1.64 lakh crore compared to Rs 1.49 lakh crore in the same month in 2022, the finance ministry informed recently.</p><p>During the April-December 2023 period, gross GST collection witnessed a robust 12 per cent growth, reaching Rs 14.97 lakh crore, as against Rs 13.40 lakh crore collected in the same period of the previous year, the ministry said in a statement.</p><p>The GST structure was implemented by the Modi government in July 2017. It has a significant impact on the budget allocation by the Union Finance Ministry.</p><p>With Finance Minister Nirmala Sitharaman scheduled to present the interim Budget in the Lok Sabha on February 1, 2024, we take a look at the taxation system's role in the budget.</p><p><strong>Role of GST in Budget</strong></p><p>Ever since a single uniform tax structure was introduced, the composition of the tax component of the budget has changed, with the GST structure aimed at dismantling the fiscal barriers among states.</p><p>The Centre and state used to levy multiple taxes such as excise duty, octroi tax, VAT, entry tax etc prior to the implementation of GST, all of which have been subsumed under GST. </p><p>Earlier, the Centre used to collect only service taxes. But, under the uniform direct tax structure, both state and the Centre collect identical taxes on services and goods.</p><p>With 18 per cent GST levied throughout the nation, the Centre and state receive 9 per cent tax each named CGST and SGST, respectively.</p><p><em>(with PTI inputs)</em></p>
