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Microlesson · 5-min read

Genesis of GST in India

# Genesis of GST in India

## Timeline of Key Events

YearEvent
2000The then PM introduced the concept of GST and set up a committee to design a GST model.
2006Announcement by Union Finance Minister in Budget 2006–07 that GST would be introduced from 1 April 2010.
2014The Constitution (122nd Amendment) Bill was introduced in the Lok Sabha.
Sep 2016Constitution (101st Amendment) Act was enacted; 1st GST Council meeting held.
Mar 2017GST Council recommended CGST, SGST, IGST, UTGST & Compensation Cess Bills.
Apr 2017CGST, IGST, UTGST and Compensation Cess Acts were passed.
May 2017GST Council recommended all the rules.
30 Jun 2017All States except J&K passed their SGST Act.
1 July 2017GST launched across India.
8 July 2017SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K.

## International Context

> France was the first country to implement VAT/GST in 1954.

## Key Takeaways for Exam

  • The Constitutional Amendment was the 122nd Bill but became the 101st Act.
  • J&K was the last State to adopt GST, joining a week after the all-India launch.
  • The Bill was introduced in 2014 but the Act was passed only in 2016.

Worked example

### Example 1

Question: Which Constitutional Amendment paved the way for GST?

Answer: The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha. After passage, it became the Constitution (101st Amendment) Act, 2016.

### Example 2

Question: When was GST launched and which State joined later?

Answer: GST was launched on 1 July 2017. Jammu & Kashmir joined later — its SGST Act was passed on 8 July 2017, and CGST/IGST Ordinances were promulgated the same day to extend GST to J&K.

⚠️ Common exam mistakes

  • Mixing up the Bill number (122nd) with the Act number (101st).
  • Stating that France implemented VAT in 1947 or 1957 — correct year is 1954.
  • Forgetting that J&K joined GST after 1 July 2017.
Reference:
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