Understanding Goods And Service Tax ( GST )

Goods and Services Tax (GST) is an indirect taxation in India merging most of the existing taxes into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016. The GST is governed by GST Council and its Chairman is Union Finance Minister of India Arun Jaitley.






CURRENT TAX PLAN OF INDIAN GOVT ( NON-GST )

To understand the GST watch the video given bellow :

Impact of GST :

1. Life gets simpler

GST will replace 17 indirect tax levies and compliance costs will fall 

2. Revenue will get a boost 

- Evasion set to drop - Input tax credit will encourage suppliers to pay taxes - States and Centre will have dual oversight - The number of tax-exempt goods will decline

3. A common market 

It's currently fragmented along state lines, pushing costs up 20-30%

4. Logistics, inventory costs will fall Checks at state borders slow movement of trucks. In India, they travel 280 km a day?? compared with 800 km in the US

5. Investment boost For many capital goods, input tax credit is not available. Full input tax credit under GST will mean a 12-14% drop in the cost of capital goods. Expected: A 6% rise in capital goods investment, 2% overall.


6. Make in India

a) Manufacturing will get more competitive as GST addresses cascading of tax, inter-state tax, high logistics costs and fragmented market b) Increased protection from imports as GST provides for appropriate countervailing duty.


7. Less developed states get a lift

The current 2% inter-state levy means production is kept within a state. Under the GST national market, this can be dispersed, creating opportunities for others

8. Manufactured goods could become cheaper Lower logistics and tax costs

9. GDP lift HSBC estimates an 80 basis point rise in GDP growth over 3-5 years.


Read more at:

http://economictimes.indiatimes.com/articleshow/53514291.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

East Indian Company ( Company Rule )

In 1600, East Indian company was established by a Charter of queen Elizabeth of England by which some of the traders were allowed to trade with India.
The traders exploited the political unrest in the country and finally become the rulers.

Logo of East Indian Company

After the Battle of Plassey, the British East Indian Company became the Sovereign of Bengal.
After the Battle of Buxar, the company acquired the right to collect revenues of Bengal, Bihar and a part of Orissa.

These achievements question whether a trading company was entitled to acquire and rule a vast territory and whether the British parliament was not responsible for governing the territory acquired by the British company.

The Home Government was getting a share of € 4,00,000 every year from the company.
In spite of all prosperity of the company, the Director approached the Home Government for a loan of  € 1,000,000 in 1772.
So the Lord North, then the Prime minister of England appointed a Secret Committee.On recommendation of the committee, the loan was granted and the Regulating Act was Passed in 1773.

REGULATING ACT OF 1773

• Designated Governor of Bengal as Governor general of Bengal.
• Made Governor of Bombay and Madras presidencies subordinate to the Governor-general of Bengal. 
• Establishment of Supreme court at Calcutta (1774) comprising one chief justice and three other judges.
• Prohibited the servants of the company from engaging in private trade or accepting bribes from the natives.
• British Govt control over the company by requiring the court of Directors to report on its ( revenue, civil, and Military affairs ) in India.

PITT'S INDIA ACT OF 1784

• It allowed court of directors to manage the commercial affairs.
• Board of Director to control the political affairs also empowered to supervise and direct all operation of civil, military govt or revenues of British possessions in India.

CHARTER ACT OF 1833

• It made Governor general of Bengal to Governor general of India and vested him all civil and military powers.
• Thus ,the act created for the first time ,a Government of India having authority  over the entire territorial area possessed by the British Government. 
• It ended the activities of East Indian company as a commercial body, which became purely a administrative body.
• It introduce a system of open competition for selection of civil servants, and stated that Indians should not be debarred from holding any place, office and employment under the company.

CHARTER ACT OF 1853 

• It separated, for the first time the legislative and executive functions of the governor-general's council.
• Provided additional 6 new members called legislative councilors to the council.
• Introduced open competition system for civil service to all including Indians.
• It introduced for the first time, local representation in the Indian legislative council.
• Of the six new legislative members of the governor general's council, four members were appointed by the local govt of Madras.

What if Earth stops spinning suddenly ??

Today while I am travelling from Chennai to Vellore in bus, I don't find seats in bus so I decided to travel in bus by standing....




While moving, the bus driver suddenly applied brake....And obviously I am forced to move forward from my original position.

Have you ever think why you are forced to move forward??

It is because the brake is applied only to the bus and not to us...
We are travelling along with the bus at some speed..If suddenly brake is applied we are forced to move at the speed of the bus...

Let us come to the topic..What if earth suddenly stops spinning ???

Earth spins at 1698.21222 km/hr. And we cannot feel it because we are travelling along with the earth at constant speed.

If Earth stop rotating.,

• All buildings, rocks, living beings, top soil, trees will thrown out to Atmosphere at 1698 km/hr.
• 1/2 year Day light, 1/2 year Night time.

Is it possible ?? Do Earth stop its spinning process ??

To know about this we should know why our planet rotates !

We all know about Newton 1st Law of motion that Law of Inertia..
i.e., Object in motion tends to motion unless an external force is applied

The Earth spins because it formed in the accretion disk of a cloud of hydrogen that collapsed down from mutual gravity & it continues to spin because of Inertia.

THIS VIDEO SHOWS HOW THE EARTH IS FORMED AND WHY IT ROTATES ??

But there is some force of friction that tends to stop earth-bound objects moving forever.
But for the earth rotating on axis there is no strong enough counteract force working to slow down earth. (Except tidal effect of the moon)

Because of the moon, the spin of the earth is slowing down at a rate of about 1 milli-second year.
Today it took 23 hrs 56 min for 1 revolution.
At the time of Dinosaurs days its 22 hrs.
Million's of years from now the cycle of a day on earth will likely stretch to 25 or 26 hrs.

When our Earth touches 40,009.88 hrs to complete its one revolution, then the speed will nullify i.e., 0 km/hr.

Note :- The circumference of the earth is 40,009.88 km.
Distance / Time = Speed
40,009.88 / 23.59= 1698.2122 Km/hr ( Current Speed )

So, it will took many many trillion of years to stop its spinning, so the process is very very slow, since the process is slow and not sudden it wont affect in future also.

But the day and night time will increase every million years.