#GS_3
#Taxation #GST
Read about GST compensation cess.
✅ #Facts4Prelims
Compensation cess was introduced as relief for States for the loss of revenues arising from the implementation of GST. States, in lieu of giving up their powers to collect taxes on goods and services after local levies were subsumed under the GST, were guaranteed a 14 per cent tax revenue growth in the first five years after GST implementation by the Central government. States’ tax revenue as of FY16 is considered as the base year.
Compensation cess is levied on five products considered to be ‘sin’ or luxury goods. For example, SUV vehicles (more than 4 metres) are charged 50 per cent GST, of which the GST tax rate is 28 per cent and the compensation cess is 22 per cent. The collected compensation cess flows into the Consolidated Fund of India, and then transferred to the Public Account of India, where a GST compensation cess account has been created. States are compensated bi-monthly from the accumulated funds in this account.
#Taxation #GST
Read about GST compensation cess.
✅ #Facts4Prelims
Compensation cess was introduced as relief for States for the loss of revenues arising from the implementation of GST. States, in lieu of giving up their powers to collect taxes on goods and services after local levies were subsumed under the GST, were guaranteed a 14 per cent tax revenue growth in the first five years after GST implementation by the Central government. States’ tax revenue as of FY16 is considered as the base year.
Compensation cess is levied on five products considered to be ‘sin’ or luxury goods. For example, SUV vehicles (more than 4 metres) are charged 50 per cent GST, of which the GST tax rate is 28 per cent and the compensation cess is 22 per cent. The collected compensation cess flows into the Consolidated Fund of India, and then transferred to the Public Account of India, where a GST compensation cess account has been created. States are compensated bi-monthly from the accumulated funds in this account.
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#GS_3
#Taxation #GST
From prelims point of view, you should know the trends of GST collection.
Join @prep4upsc.
#Taxation #GST
From prelims point of view, you should know the trends of GST collection.
Join @prep4upsc.