Indian taxation system, the system is divided into two taxes 

• Direct Taxation
• Indirect Taxation

Direct Taxes

In Direct Taxes, the burden directly falls on the taxpayer.

Income Tax – According to the Income Tax Act 1961, every person, who is an assessee and whose total income exceeds the maximum exemption limit, shall be chargeable to the income tax at the rate prescribed in the Financial Act. Such income tax shall be paid on the total income of the previous year in the relevant assessment year.

Wealth Tax – Wealth tax, in India, is levied under Wealth-tax Act, 1957. Wealth tax is a tax on the benefits derived from property ownership. The tax is to be paid year after year on the same property on its market value. Chargeability to tax also depends upon the residential status of the assessee, the same as the residential status for the purpose of the Income Tax Act.

Introduction To GST

The GST (Goods and Services Tax) is a unified indirect tax across the country on goods and services.

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At Central Level

• Central Excise Duty
• Service Tax
• Additional Customs Duty (Countervailing Duty)
• Special Additional Duty of Customs (SAD) etc

At State Level

• VAT/Sales tax
• Entertainment tax
• Luxury Tax
• Taxes on lottery, betting and gambling etc

GST Legislation

• The Constitution (122 Amend.) Bill, 2014 seeks to amend the Constitution to introduce the Goods and Services Tax (GST).
• The GST Constitutional (122nd Amend.) Bill 2014 became the GST Constitutional (101st Amendment) Act’ 2016 when the president asserted the provisions of the bill on 8th Sept 2016.

Advantages of Gst

• Easy compliance
• Uniformity of tax rates and structures
• Removal of cascading- (Removal of inevitable and sometimes unforeseen chain)
• Higher revenue efficiency- (Due to increase in tax base)
• Transparency in tax system 

Important Facts

1. The Goods and Services Tax (GST) was first implemented in France.

2. India’s GST is based on the Canadian model.

3. GST in India was made on the recommendation of the Vijay Kelkar Committee.

4. GST in India was implemented on July 1, 2017

5. The first state which implemented the GST was Assam.

6. Amitabh Bachchan has been made the brand ambassador of GST.

7. GST has been implemented under Article 279 of the Indian constitution.

8. The GST Council was formed by the President of India in September 2016.

9.. The council is headed by the union finance minister Nirmala Sitharaman assisted by the finance minister of all the states of India. 

10. At present the GST Council has 31 members.

11. GST has been implemented by the 101st Constitution Amendment Act, 2016.

12. The GST was the 122nd constitutional amendment bill to be introduced in the Parliament of India.

13. The President of India approved the GST bill on 8th September 2016.

14. During the passing of the GST bill in parliament; 336 votes casted in favour of the GST bill and 11 votes were against it.

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