Last Updated on March 10, 2022 by Sravan Kumar
When, Where & How GST is started?
In this topic you are going to learn “When, Where, and How GST started”. We are trying to make it crystal and synopsis kind of explanation to make you save your time. You are going to gain full and complete knowledge on “When, Where, and How GST started”. This topic will be more detailed and exhaustive. So, please spare your valuable time to learn this topic. We shared valuable inputs for your knowledge purpose.
How GST is started..!!
As you know, generally to run any House, Income is compulsory right..!!
Either to pay House Rental expenses, to pay Credit card bills, to buy groceries or to go Shopping and also for paying EMI’s, etc. We need income to bear all these expenses.
In ancient times also Kings had collected money from people to run their kingdoms. The amount collected in such a manner will be called “Taxes”. In modern times also a collection of taxes is required for governments.
Why income is compulsory to governments..!!
To run the Governments smoothly, income is must either to construct Roads or Dams and to provide Electricity to public and to expend on People’s Welfare, Salaries to Employees, etc., For all these expenses Government needs money which will be collected from the general public through various ways.
If you Construct a new house, you should pay “House Tax”
If you Buy a New Car, you should pay “Vehicle Tax”
If you Earn money, you should pay “Income Tax”
In a similar way, on Supply of Goods and Services, you should pay “Good and Service Tax (GST)” to the government.
This is how the GST has started.
Where GST started..!!
GST was first started in one of the World’s Oldest countries i.e. France in 1954. France was the first country to implement GST to reduce tax evasion. Since then, more than 160 countries have implemented GST with some countries having Dual-GST (e.g. Brazil, Canada, Singapore, Malaysia, India, etc.,
When GST started in India..!!
In the year 2000, the then Prime Minister mooted the concept of GST and set up a committee to design a Goods and Services Tax (GST) model for the country. In 2003, the Central Government formed a task force on Fiscal Responsibility and Budget Management, which in 2004 strongly recommended fully integrated ‘GST’ on a national basis.
Subsequently, the then Union Finance Minister, Shri P. Chidambaram, while presenting the Union Budget (2006-2007), announced that GST would be introduced from April 1, 2010.
Since then, GST missed several deadlines and continued to be shrouded by the clouds of uncertainty and introduced the Historic tax reform of GST in India from 01st July 2017. GST extends to the whole of India including the State of Jammu and Kashmir.
I hope you understood the basic GST concept.
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