Introduction to GST:

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many Indirect taxes in India such as the
excise duty, VAT, services tax, etc. The Goods and Service Tax .
Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. GST Is a single domestic indirect
tax law for the entire country.
Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a
comprehensive, multi-stage, destination-based tax that is levied on Every value addition.
Multi-stage
Purchase of raw materials => Production or manufacture => Warehousing of finished goods => Selling to wholesalers. =>
Sale of the product to the retailers. => Selling to the end consumers.
Value Addition: A manufacturer who makes biscuits buys flour, sugar and other material. The Value of the inputs increases
when the sugar and flour are mixed and baked into biscuits.
Objectives of GST

1. To achieve the ideology of ‘One Nation, One Tax’ : GST has replaced multiple indirect Taxes, which were existing under
the previous tax regime. The advantage of having one Single tax means every state follows the same rate for a particular
product or service.
2. To subsume a majority of the indirect taxes in India : India had several indirect taxes Such as service tax, Value Added
Tax (VAT), Central Excise, etc., which used to be levied At multiple supply chain stages. Some taxes were governed by the
states and some by the Centre.
3. To eliminate the cascading effect of taxes : A cascading effect is an unexpected chain of Events that occurs when an
event in a system has a negative impact on other, related Systems. One of the primary objectives of GST was to remove
the cascading effect of taxes.
4. To curb tax evasion: Under GST, taxpayers can claim an input tax credit only on invoices Uploaded by their respective
suppliers. This way, the chances of claiming input tax credits On fake invoices are minimal.
5. To increase the taxpayer base: Previously, each of the tax laws had a different threshold Limit for registration based on
turnover. As GST is a consolidated tax levied on both goods And services both, it has increased tax-registered businesses.
6. Online procedures for ease of doing business: GST procedures are carried out almost Entirely online. Everything is done
with a click of a button, from registration to return filing To refunds to e-way bill generation.
7. To promote competitive pricing and increase consumption: Introducing GST has also Led to an increase in
consumption and indirect tax revenues.

Advantages of GST: GST has mainly removed the cascading effect on the sale of goods and Services. Removal of the
cascading effect has impacted the cost of goods. Since the GST regime Eliminates the tax on tax, the cost of goods decreases.
Also, GST is mainly technologically driven. All the activities like registration, return filing, Application for refund and response
to notice needs to be done online on the GST portal, which Accelerates the processes.

Components of GST: There are three taxes applicable under this system: CGST, SGST & IGST.
CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a Transaction happening within
Maharashtra)
SGST: It is the tax collected by the state government on an intra-state sale (e.g., a Transaction happening within
Maharashtra)
IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu).

Multiple rate structure: The GST presently has a four slab structure with tax rates kept at 5%, 12%, 18% and 28%. The
multiple tax structure has been justified on the ground that necessary Items of mass consumption should be taxed at a
lower rate while luxury items should be taxed at Higher rates. However, multiple rates are likely to increase administrative
complexity as well as Create classification disputes. Such a system makes it difficult to evaluate the overall effects of the Tax
design.
Salient features of the Act are:

1) The Act aims to provide better and all-round protection to consumers.

2) In terms of geographical application, it applies to the whole of India except the State of Jammu and Kashmir.
3) It applies to all goods and services unless otherwise expressly notified by the Central Government.
4) It is indeed a very unique and highly progressive piece of social welfare legislation. The Act has made the consumer
movement more powerful, broad-based and effective and People oriented.
This is the only law which directly relates to market place and try to redress complaints Arising from it. Its provisions
are very wide-ranging and highly effective.
5) It provides effective safeguards to the consumers against different types of exploitation Such as defective goods,
unsatisfactory (or deficient) services and unfair trade practices

Three-Tier Grievance Redressal Machinery

For enforcement of the rights of the consumers, the Act has created special consumer Courts. As Act provides for a three-
tier consumer grievance redressal machinery with the District Forums at The base, the State Commission at the middle level
and the National Commission at the top level. The State and national level bodies also function as appellate authorities. Any
judgment given by The National Commission can be challenged in the Supreme Court.

Consumer Section.2(1)(d) :

Means any person who,—(i) buys any goods for a consideration which has been paid or promised Or partly paid and partly
promised, or under any system of deferred payment and includes any user Of such goods other than the person who buys
such goods for consideration paid or promised or Partly paid or partly promised, or under any system of deferred payment,
when such use is made With the approval of such person, but does not include a person who obtains such goods for resale
Or for any commercial purpose; or (ii) hires or avails of any services for a consideration which has been paid or promised or
partly Paid and partly promised

Complaint section 2(1)©

“complaint” means any allegation in writing made by a complainant that—

(i) An unfair trade practice or a restrictive trade practice has been adopted by any trader or service Provider
(ii) The goods bought by him or agreed to be bought by him suffer from one or more defects;
(iii) The services hired or availed of or agreed to be hired or availed of by him suffer from Deficiency in any respect;
(iv) A trader or the service provider, as the case may be, has charged for the goods or for the Services mentioned in the
complaint, a price in excess of the price
(v) Goods which will be hazardous to life and safety when used are being offered for sale to the Public.

Defect” section 2(1)(f)

Means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard Which is required to be
maintained by or under any law for the time being in force or under any Contract, express or implied, or] as is claimed by the
trader in any manner whatsoever in relation to Any goods;
“deficiency” section 2(1)(g)
Means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of Performance which is
required to be maintained by or under any law for the time being in force or Has been undertaken to be performed by a
person in pursuance of a contract or otherwise in Relation to any service;
“Complainant” section 2(1)(b).
Means—
i) A consumer; or
ii) Any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956)
iii) (iii) the Central Government or any State Government; or
iv) (iv) one or more consumers, where there are numerous consumers having the same interest
v) In case of death of a consumer, his legal heir or representative who or which makes a Complaint;