Site Loader
What is GST? It is a single tax on the supply of goods and services.Read out this know benefits of GST, types and GST and all about GST.

Goods and Services Tax (GST) in India is huge tax reform of indirect tax previously there is VAT and service tax which is levy on sale on goods and supply of services but in present scenario there is only one tax that is GST that’s why it is called one nation one tax.

It is also called comprehensive multistage destination based consumption tax as well. Comprehensive because it subsumed all indirect tax, multistage as it is imposed on each production stage and destination based because it is collected from end user I.e. consumer as well.

Rates Under GST Regime

Goods and services are divided into five different tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime.

Types of GST

As we know that in previous tax regime there is VAT and CST for sale of goods and service tax for supply of services. VAT rate may differ from state to state as well like if some products which we sales in Maharashtra at 12% is totally sale at different rate in another state. So maintaining uniformity in tax rate government has introduced GST.

While collecting GST from end user there are three different types of GST tax is there.

  • CGST
  • SGST
  • IGST

Depending upon transition these tax type levied on supply. Say as an example if I am dealer of Maharashtra and sales good in Maharashtra then CGST and SGST will levy on such supply and if I sold goods to other state IGST will levy.

Who is Liable to Get GST Registration

Supplier engaged in providing a taxable supply of goods or services or both is required to obtain GST registration in the State or Union territory from where the supply is initiated, in case the aggregate turnover exceeds INR 20 Lakhs in a financial year.

Even if your turnover is less than 20 Lakh in a financial year you may get voluntary registration under GST laws.

Rules and Acts Under the GST

The Government is also in the operation of driving the GST Council to assemble rules and acts for GST execution.

GST rules passed till date: Composition Rules, Valuation Rules, Transition Rules, Input Tax Credit Rules, Invoice Rules, Payment Rules, Refund Rules, Registration Rules and Return.

Types of Return Under GST

In present scenario there are only two form available for normal or regular taxpayer under GST.

  • GSTR1: it is used for providing the details of outward supplies.
  • GSTR3B: Summary return where taxpayer shows outward and inward supplies on which he claims input tax credit.

Key Benefits of GST:

  • GST eliminates the cascading effect of tax.
  • Higher threshold for registration.
  • Composition scheme for small businesses.
  • Simple and easy online procedure.
  • The number of compliances is lesser.
  • Defined treatment for E-commerce operators.
  • Improved efficiency of logistics.
  • Unorganized sector is regulated under GST.
  • GST will exclude any direct communication between the assessing authority and the taxpayer by making the process standard and automating.

Post Author: Tachotax

Leave a Reply

Your email address will not be published. Required fields are marked *