UNDERTANDING GST- HISTORY & WHY IS IT NEEDED ?

In this episode of Concept Talk, Dr. Vikas Divyakirti has done a detailed review of the GST Bill The podcast explanation is full of interesting examples that will help learn Economics concept with full clarity. The language of this podcast is in Hindi and are easy to understand to common. The discussion is about UNDERTANDING GST- WHY IS IT NEEDED ? Dr. Vikas Divyakirti (in part one of the 3-part video)explains why GST is needed. First it is important to understand why it was brought in the first place. What is GST comes later in order. It is indeed the biggest financial reform, he says, in India since independence. To explain the economics concepts clearly, he explains the direct taxes, indirect taxes, taxes levied/collected by states, centre, local taxes and so on (the whole nine yards of tax system in India). Simplifying the process, he even illustrates the concept of taxes with the glass in the classroom. He goes into details of Federalism particularly the division of powers between centre and states to explain the context of tax administration in India and the role of centre and states in Indian governance. The white board used in the video also contains all the notes about the GST being taught in the class. The concept of value added tax (VAT) and the history of tax administration in India (along with global examples from Europe, Africa) is also discussed for a holistic understanding. A very problematic area without the GST is that people were paying tax on taxes paid because of the ‘cascading’ nature of the tax system. Value Added Tax is a precursor to GST (VAT started in France and most of Europe shifted to it). VAT may not lead to GST but GST needs VAT; so the tax reforms are a sort of progression. With the VAT regime, there used to be a competition among states to have lower VAT rates to attract customers from nearby states (example: Delhites would go to Gurgaon to shop, if needed). Note: - The sole purpose of using it is to encourage people towards education and the use of the content used in this concept talk is not to offend anyone. Credit of this concept talk goes to Drishti IAS youtube channel. Official You Tube Channel of Drishti IAS - https://www.youtube.com/channel/UCzLqOSZPtUKrmSEnlH4LAvw Thank You So Much🙏🙏 - Special Thanks To - Dr. Vikas Divyakriti & Team Drishti IAS. I request Drishti IAS Team if they find any problem with the content, please inform us on this mail id. email: [email protected]

There are no comments yet.

Please log in to write the first comment.