Since the advent of the Goods & Services Tax (GST) in July 2017, the topic of GST has been a subject matter of varied litigation. The intent of GST is indeed perspicuous apart from being laudable, as well articulated in the first discussion paper published by the Empowered Committee of State Finance Ministers in 2009, which states as follows:
“In the GST, both the cascading effects of CENVAT and service tax are removed with set-off, and a continuous chain of set-off from the original producer's point and service provider's point up to the retailer's level is established which reduces the burden of all cascading effects. This is the essence of GST, and this is why GST is not simply VAT plus service tax but an improvement over the previous system of VAT and disjointed service tax. The GST at the Central and at the State level will thus give more relief to industry, trade, agriculture and consumers through more comprehensive and wider coverage of input tax set-off and service tax setoff, subsuming of several taxes in the GST and phasing out of CST.” [Emphasis supplied]
As a proprio vigore, the Statement of Objects and Reasons appended to the Bill introducing the Central Goods & Services Tax Act, 2017 (“CGST Act”) also stated that GST will be levied at each stage of supply chain and the taxes paid at earlier stage will be available as input tax credit. The relevant extract of the same is as under:
3. In view of the aforesaid difficulties, all the above-mentioned taxes are proposed to be subsumed in a single tax called the goods and services tax which will be levied on sac o! of goods or services or both at each stage of supply chain starting from manufacture or import till the last retail level.
This story is from the August - September 2020 edition of UNIQUE TIMES.
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This story is from the August - September 2020 edition of UNIQUE TIMES.
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