History of GST. A Brief History of GST in India and also GST History around the World

Updated: Dec 20,2019 11:52 IST

History of GST. A Brief History of GST in India and also GST History around the World
History of GST has begun in India started before two decades and was made successful in the year 2017. History of GST will help you under the benefits of Goods and Services Taxes and the advantages over other type of taxes. History of GST given in different stages, its transformation from other tax types, and more informative data on GST are given in the article.

An Introduction on History of GST

GST or Goods and Services Tax came into use from July 1, 2017 replacing number of other taxes that was applied till June 30, 2018. The discussions of GST Bill has been in process process for more than two decades and the bill was passed to implement GST from July 1, 2017 by the Prime Minister of India and his Finance Minister Arun Jaitley. GST was launched on the midnight of July 1, 2017. The single GST replaced several taxes and levies which included: central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi. We follow the dual GST system i.e. GST for State and Central named SGST and CGST, respectively. Let us have an overview on the history of GST from the content below as an eye-opener.

Overview on History of GST

  • 2006 - First announcement of GST was made by the Union Minister during the 2006-2007 budget, that it would be introduced on April 1, 2010.
  • 2009 - Empowered Committee released the first Discussion Paper.
  • 2011 - 115th Amendment Bill was introduced and subsequently lapsed
  • 2014 - 122nd Amendment Bill was introduced in Lok Sabha
  • August 2016 - One Hundred and First Amendment Act was enacted
  • September 2016 - The first GST Council Meeting was conducted
  • March 2017 - CGST, SGST, IGST, UTGST and Compensation Cess Act was recommended by GST Council.
  • April 2017 - CGST, SGST, IGST, UTGST and Compensation Cess Act were passed
  • 1 July 2017 - GST laws, Goods and Services Tax was launched all over India.
  • 7 July 2017 - Jammu and Kashmir state legislature passed its GST

What were the Taxes available Before the Implementation of GST? 

State Value Added Tax (VAT), Central Excise Tax, Services Tax,  Central Sales Tax, etc are all replaced by the single entity called GST (Goods and Services Tax). Value Added Tax was mainly for the taxes at State level across all states in India. Now on introduction of GST, VAT is replaced by State GST or SGST and the State VAT department will be simply converted to SGST Departments. More details on SGST are given below. Similarly, Central Excise Tax that is the central tax for the goods and services are now replaced with Central GST or CGST. More details given under respective heading below.

What was the GST Rates as on July 1, 2017?

As said in the Introduction, GST was implemented in the year 2017 on July 1st. When Gst was first introduced, the charges were broadly divided for State and Central GST. When compared to the earlier taxing system, newly introduced GST rates were higher. When GST was first introduced it had five tax slabs and the goods and services were spread across these tax slabs. This GST rates were followed till an amendment to lower the GST rates on selected goods and services were made on 18th January 2018 at 25th GST Council Meet. After which amendments were made on 29 Goods and 53 Services which came to effect from 25 January 2018. GST rates major goods till January 25, 2018 are listed below.

0% GST Rate

fresh meat, fish chicken, Eggs, Milk, butter milk, Curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, Salt, Bindi Sindoor, Stamps, judicial papers, printed books, Newspapers, Bangles, handloom etc.

5% GST Rate

Fish fillet, Cream, skimmed milk powder, branded paneer, frozen vegetables, Coffee, Tea, Spices, pizza bread, Rusk, Sabudana, Kerosene, Coal, Medicines, Stent, lifeboats

12% GST Rate

Frozen meat products, Butter, Cheese, Ghee, dry fruits in packaged form, animal fat, Sausage, fruit juices, Bhutia, Namkeen, Ayurvedic medicines, tooth powder, Agarbatti, colouring books, picture books, Umbrella, sewing machine, and cellphones

18% GST Rate

Flavoured refined sugar, Pasta, Cornflakes, pastries and cakes, preserved vegetables, jams, sauces, Soups, ice cream, instant food mixes, mineral water, Tissues, Envelopes, Tampons, notebooks, steel products, printed circuits, Camera, speakers and monitors.

28% GST Rate

Chewing gum, Molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, Paint, Deodorants, shaving creams, after shave, hair shampoo, Dye, Sunscreen, Wallpaper, ceramic tiles, water heater, Dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, Shavers, hair clippers, Automobiles, Motorcycles, aircraft for personal use, and yachts

What are the Revised GST Rates that was Effective From January 25, 2018?

With the introduction of GST in July 2017, the tax rates on most on the basic commodities also remained high. But on the 25th GST Council Meet it was proposed to reduce the GST rates on selected goods and services. Based on this, GST Rates were revised on January 18, 2018 and the revised GST rates for both Central and State Came into effect on January 25, 2018. The rate were revised on 29 Goods and 53 Services. GST Rates were revised from 28% to 18%, 28% to 12%, 18% to 12%, 18% to 5% and few were charged NIL GST and for very few products there was raise in GST Rates.

Goods taxed at 0%

Vibhuti, De-oiled rice bran and parts used to manufacture hearing aids

Reduced from 28% to 18%

Old and used motor vehicles [medium and large cars and SUVs] with a condition that No ITC is availed, Public transport Buses that run on Biofuel

Reduced from 28% to 12%

For Old and used motor vehicles [other than medium and large cars and SUVs] with a condition that No ITC is availed

Reduced from 18% to 12%

Sugar boiled Confectionery, Drinking water, packed in 20 litres bottles, Biodiesel, Drip irrigation system including laterals, sprinklers, Mechanical Sprayer, Certain listed Bio-pesticides (12 in nos), Fertilizer grade Phosphoric acid, Bamboo wood building joinery

Reduced from 18% to 5%

LPG supplied to  Household Domestic Consumers, Raw materials and Consumables needed for Launch vehicles, Satellites and Payloads (Both CGST and IGST Rates), Tamarind Kernel Powder, Mehendi paste in cones

Reduced from 12% to 5%

Articles of straw, of esparto or of other plaiting materials, Velvet fabric [with a condition that no refund is claimed on ITC]

Reduced from 3% to 0.25%

Diamonds and precious stones

Rate Increased - 0% to 5%

Rice bran (other than de-oiled rice bran)

Rate Increased - 12% to 18%

Cigarette filter rods

History of GST Based on Country

  • France - The first country to implement GST in 1954 and many other European countries introduced GST in 1970-80s.
  • China - Introduced VAT in 2016 to replace the Business Tax System that was already existing. GST is applied on selected goods.
  • Japan - It introduced GST in the name of Consumption Tax in the year 1989.
  • Malaysia - Introduced GST in 2015
  • Australia - GST was introduced in 2000 with the rate of 10% and with the plans to increase it to 15%.
  • Singapore - Introduced GST in the year 1994.
  • Canada - GST was introduced in 1991 and has a dual model like India i.e. State GST and Central GST. 

What is GSTN?

GSTN stands for Goods and Services Tax Network. It was introduced by the Government as a private company in 2013. It was registered under the Companies Act 1956, under Section 25. The main purpose of GSTN is to provide front-end services of registration, returns to taxpayers and payment. It also has the duty to develop back-end technical modules which will used by the states that had opted. Nearly 34 IT and Financial technology companies are chosen and named as GST Suvidha Providers to develop applications that will be accessed by taxpayers to interact with GSTN. These applications are very useful for the taxpayers as well as the government.

What are the Benefits of Introduction of GST?

With the introduction of GST, there are various benefits globally. The main motive is to maintain a uniform tax and develop the country’s products and introduce it globally. Some of the benefits of GST are listed below.
  • GST creates common market nationally. 
  • Attracts foreign investment.
  • Helps to have uniform taxation.
  • Helps improve production and encourage to enter international market.
  • Small retailers have nil tax or low tax.
  • Consumers are benefited by purchasing from the small retailers.

What are the Features of GST?

GST implementation has brought a major change in the economy of India. It has widen up the markets of the goods and services due to uniformity of taxation throughout the country. Some of the features of GST are listed below.
  • GST is applied on the supply of the goods unlike the earlier form of earlier taxation.
  • GST is destination based structure of taxing.
  • It is charged as CGST, SGST and IGST.

General Related News

Aadhar Card Update - How to Update/Correction Aadhaar Card Name, Address, DOB, Mobile Number Details Online at UIDAI

13 days ago
Aadhar Card Update or Update Aadhaar: Know detailed Aadhar Card Update Procedure about How to Update/Correction Aadhaar Card Name, Address, DOB, Mobile Number Details Online at ....

Sardar Patel Scholarship 2020 - Apply Online for Sardar Vallabhai Patel Scholarship 2020 for Student Pursuing Graduation

56 days ago
Sardar Patel Scholarship 2020 for Students Pursuing Graduation: Buddy4Study India Foundation’s Sardar Patel Scholarship 2020 for Student Pursuing Graduation should be applied ....

Aadhar Card - Latest Aadhaar Card Updates and Complete Aadhaar Card Information, Number Online

63 days ago
Aadhar Card - Aadhaar Card is the unified national identity issued by UIDAI for every Indian resident. Aadhar Card has become essential for every single process and transactions, ....

Aadhar Card Download: How to Download Aadhaar Card Online and Print out e-Aadhaar at UIDAI.gov.in

70 days ago
Aadhar Card Download - Step by Step Procedure to Download Aadhaar Card by Name, DOB, Entrollment Number, Mobile Number or Without Mobile Number at UIDAI Website. UIDAI is an easier ....

Check Aadhar Card Status Online at UIDAI, Enquiry Aadhar Card Update Status

74 days ago
Aadhar Card Status: Aadhaar Card Status reveals the position of your Aadhar Card application, Check Aadhar Card Update Status by Name, Phone Verification Online and any time after ....

Chandra Grahan 2020: Chandra Grahan Lunar Eclipse on June 5, Chandra Grahan Date, Timing in India

106 days ago
Chandra Grahan 2020: The second 2020 Chandra Grahan Lunar Eclipse is set to take place on June 05. The first lunar eclipse took place on 10th January earlier year. On 5th June ....

OSBCL Odisha Liquor Home Delivery Order Online at osbc.co.in - How to order liquor online in Odisha

107 days ago
OSBCL Online Delivery: Odisha State Beverage Corporation(OSBC) Limited resumed its work on Saturday to restart sales of online liquor delivery in Odisha. Liquor home delivery in ....

Aadhar Card for Children. How to Apply Online and Offline Mode and Other Details

109 days ago
Aadhar Card for Children as well as an adult is a voluntary process and can be enrolled for even a newborn baby. Aadhar Card for Children can be got with the proof of address and ....

Aadhar Virtual ID for Aadhar Authentication How to generate VID, Retrieve and More

109 days ago
Aadhar Virtual ID is the 16 digit number which can be generated only by the Aadhar card holders. Aadhar Virtual ID is outlined along with the Aadhar number for the privacy and ....

How to Lock and Unlock Biometrics in Your Aadhar Card Different Methods in Detail

109 days ago
UIDAI had set up a feature for locking and unlocking the cardholders' biometric information. Aadhar Lock and Unlock Biometrics information in Aadhar Card can be done through ....

Trending News

Vexmovies 2020 - Vexmovies Illegal HD Movies Download, Latest Vexmovies Website Movies News

19 hours ago
Vexmovies 2020: Vexmovies is an illegal website that makes copyrighted content accessible through the internet to people without paying for it. Vexmovies was part of a network ....

Lookmovie 2020 - Download Illegal Lookmovie Thriller Movies, Horror Movies, TV Shows, Latest Lookmovie ag Website Movies News

19 hours ago
Lookmovie 2020: LookMovie is a web site that promotes infamous piracy and LookMovie is an unauthorized Lookmovie website that offers illicit internet users with many pirated movies ....

O2cinemas 2020 - Illegal HD Hollywood, Bollywood O2cinemas Movies Download, Latest O2cinemas com

19 hours ago
O2cinemas: O2cinemas is an illegal site that uploads pirated versions of movies and series. The O2cinemas website allows users access to download pirated copies of Hindi, English ....

Primewire ag 2020 - Illegal HD Hollywood Movies Download Primewire Website, Latest Primewire News

19 hours ago
Primewire ag 2020: Primewire ag is a popular website that enables its users to watch Hollywood movies and shows free of charge without charging anything for them. While uploading ....

StreamM4u 2020 - Watch and Download Illegal HD Hollywood Movies, TV Shows StreamM4u Website, grab Latest StreamM4u News

19 hours ago
StreamM4u 2020: StreamM4u is an illegal Web site focused on downloading movies. The StreamM4u platform is open to many of the desires of its users. For streaming and downloading ....

Vumoo 2020 - Vumoo Illegal HD Japanese, Korean and Chinese Movies Vumoo Download, Get Latest Vumoo Website News

19 hours ago
Vumoo 2020: Vumoo has thousands of online streaming movies and TV shows available and Vumoo 's website typically contains Hollywood movies and Vumoo famous English TV shows, ....

Flixtor 2020 - Watch and Download Illegal HD Movies, TV Shows Flixtor Website, Latest Flixtor News

19 hours ago
Flixtor 2020: Flixtor is one of the most infamous streaming websites available online and the Flixtor website houses a variety of videos, and Flixtor TV shows that users are able ....

7StarHD 2020: Illegal HD Movies Download 7starhd Website, 7starhd South, Bollywood, Hollywood Hindi Dubbed Movies HD Download

19 hours ago
7StarHD 2020: 7StarHD is an Illegal Website to download movies online illegally HD 7StarHD Bollywood, Hollywood Hindi Dubbed Movies, Tollywood, Chinese, Korean, and Japanese Movies ....

WebJalsha 2020 - WebJalsha Illegal Bengali HD Movies Download, WebJalsha Latest Bengali MP3 Songs Download, Web Jalsha Website News

19 hours ago
WebJalsha 2020: WebJalsha is an infamous piracy site that makes copyrighted content available to the WebJalsha users before or during the release of new Bengali Movies in the theaters ....

RARBG 2020 - Illegal HD Hollywood RARBG Movies Download from RARBG com

19 hours ago
RARBG 2020: RARBG is one of the most famous torrent websites for downloading media that includes audio, videos, software, movies, and so on. RARBG is a peer-to-peer platform that ....

FreshersLive - No.1 Job site in India. Here you can find latest 2020 government as well as private job recruitment notifications for different posts vacancies in India. Get top company jobs for both fresher and experienced. Job Seekers can get useful interview tips, resume services & interview Question and answer. Practice online test free which is helpful for interview preparation. Register with us to get latest employment news/rojgar samachar notifications. Also get latest free govt and other sarkari naukri job alerts daily through E-mail.