Question

When was the Goods and Services Tax (GST) implemented in India?
1. 1^st April 2018
2. 1^st July 2018
3. ​1^st July 2017
4. 1^st April 2017

Answer 1

Correct Answer - Option 3 : ​1^st July 2017

The correct answer is ​1st July 2017.

• The Goods and Services Tax (GST) was implemented on 1 July 2017.
  • To implement GST, the Constitutional (122nd Amendment) Bill (abbreviated CAB) was introduced in the Parliament and passed by Rajya Sabha on 03 August 2016 and Lok Sabha on 08 August 2016.

• Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across India.
• It has replaced central taxes like central excise, service tax, additional duties of excise & customs, special additional duties of customs, besides cesses and surcharges, on supply of goods and services. 
• The objectives of GST-
  • To achieve the ideology of ‘One Nation, One Tax’.
  • To subsume a majority of the indirect taxes in India.
  • To eliminate the cascading effect of taxes.
  • To curb tax evasion.
  • To increase the taxpayer base.
  • Online procedures for ease of doing business.
  • To promote competitive pricing and increase consumption.

• There are three taxes applicable under this system:
  • CGST: It is the tax collected by the Central Government on an intra-state sale.
  • SGST: It is the tax collected by the State government on an intra-state sale. 
  • IGST: It is the tax collected by the Central Government for an inter-state sale.