GST

Goods and Services Tax (India)

Gst is indirect tax India has a complex indirect tax structure where was multiple taxes on goods and services and it was difficult to compliance all the rules and procedures that’s why gst came into a picture Government of India wanted to change this from long time but several disputes between state and the central governments because it is a huge change in tax structure of India where the power of levy of taxes by State and the power of levy of taxes by central going to subsume.

first gst discussion started in the government of Atal Bihari Vajpayee

and also A committee recommended implementation of GST to solve the complexity of indirect tax structure.

list of taxes subsumed under GST

At Central level

1 central excise duty

2 duties of Excise goods of special

3 additional duties of textile textile products.

4 additional duties of customs commonly known as CVD

5 special additional duties of customs SAD

7 service tax

8 cess and surcharge

At state level

1 state VAT

2 Central sales tax levied by central and state government

3 purchase tax

4 tax on lotteries

5 entry tax

6 advertisement tax

7 entertainment tax

8 luxury tax

9 state cess surcharge

Many kind of cess also subsume

1 rubber cess

2 Tea cess

3 cess on coal

4 cess on Sugar

5 swachh Bharat cess

6 automobile cess

7 Clean Energy cess

8 Krishi Kalyan cess

cess on exercisable goods etcetera.

many countries has GST taxation system where normally 1 aur 2 tax rate which is call basic rate for standard tax rate but in India many tax rates like Nil 0% 1% 3% 5% 6% 12% 18% 28%.

what is cgst sgst igst

cgst and sgst will apply on intra State supply means within state

IGST will apply on inter state supply supply between two States

UT GST it will apply on intra union territory supply Legislative Assembly means within union territory for example Chandigarh to Chandigarh.

what is ITC

input tax credit it will be taken by a registered person under GST in regular tax scheme who has a responsibility to file monthly return it cannot avail by composition dealer under GST.

for example when registered dealer will purchase any goods or avail any service he will pay the Tax amount And seller upload the details of the raised invoice on the GST common porta.

when purchaser will again sell the goods after increasing price on making profit seller will give tax only on the amount of profit.

who is liable to registered under GST

any person turnover more than 40 lacs is liable registered under GST the previous limit was 20 lacs and the limit was GST 10 lacs in indirect system of India.

website of gst common portal for clear tax https://www.gst.gov.in/

Goods and Services Tax (India)