- GST was conceptualized in 2000 and implemented in 2017 after extensive discussions.
- It replaced 17 large taxes and 13 cesses at central and state levels.
- GST was introduced with a five-rate structure due to political compromises.
- The rates are 0%, 5%, 12%, 18%, and 28%, with a compensation cess on certain goods.
- Vijay Kelkar and others suggest a single GST rate of 12% for simplicity.
- A committee suggested a two-rate structure of 12% and 17-18%.
- The GST Council is considering rationalizing rates and possibly removing the 12% slab.
- There is ongoing debate about moving towards a three-rate structure in the future.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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