Hello All,
Today we will talk about GST regime in India.
we will start from introduction and will go forward post by post.
So, What is GST?
in full form it is known as Goods and Service Tax. It is unified indirect taxation mechanism.
GST Act was launched all over India w.e.f. 01-Jul-2017. unlike earlier Service Tax Act it is applicable to all India including Jammu & Kashmir.
It is Indirect Tax in nature. it means it is applicable on production, manufacturing, trading, sale purchase, transfer, barter of goods and also provision of services.
by introduction of this tax regime earlier indirect tax regimes like service tax, excise duty, surcharges, state level value added taxes and octroi abandoned and ceased to be applied. instead of various indirect taxes only single indirect tax i.e. GST is now applicable in business and commerce.
GST is a consumption based/ destination based tax, it means taxes are paid to the state where the goods or services are consumed and not the state in which they were produced.
In India, GST is applicable as dual GST model. this means Central government and state government / union territories participate in administration, collection and disbursement of GST.
all transactions made within a state or union territory are levied by both Central govt and state govt/ UT. so there is two parts of every tax implication in intra-state transaction. one part of tax belongs to Central govt i.e. CGST and second part belongs to State govt or UT i.e. SGST / UTGST.
generally, devided in equal ratio.
in case of, inter-state transactions (transactions occurring between more than one states), only Central govt levy GST on such transactions. this tax is called as IGST.
for identification of nature of transactions and applicable rate on such transactions govt adopted HSN i.e. harmonised system of nomenclature; where all transactions are identified by these codes and rate of GST applied according to those codes. Hence this makes governments to manage data of transacted items in symmetrical and systematic manner so that government can obtain useful information from these data to administer and regularize the regime.
there are various rates of GST introduced by government as per the section of taxpayers as well as types of commodities or services.
Today we will talk about GST regime in India.
we will start from introduction and will go forward post by post.
So, What is GST?
in full form it is known as Goods and Service Tax. It is unified indirect taxation mechanism.
GST Act was launched all over India w.e.f. 01-Jul-2017. unlike earlier Service Tax Act it is applicable to all India including Jammu & Kashmir.
It is Indirect Tax in nature. it means it is applicable on production, manufacturing, trading, sale purchase, transfer, barter of goods and also provision of services.
by introduction of this tax regime earlier indirect tax regimes like service tax, excise duty, surcharges, state level value added taxes and octroi abandoned and ceased to be applied. instead of various indirect taxes only single indirect tax i.e. GST is now applicable in business and commerce.
GST is a consumption based/ destination based tax, it means taxes are paid to the state where the goods or services are consumed and not the state in which they were produced.
In India, GST is applicable as dual GST model. this means Central government and state government / union territories participate in administration, collection and disbursement of GST.
all transactions made within a state or union territory are levied by both Central govt and state govt/ UT. so there is two parts of every tax implication in intra-state transaction. one part of tax belongs to Central govt i.e. CGST and second part belongs to State govt or UT i.e. SGST / UTGST.
generally, devided in equal ratio.
in case of, inter-state transactions (transactions occurring between more than one states), only Central govt levy GST on such transactions. this tax is called as IGST.
for identification of nature of transactions and applicable rate on such transactions govt adopted HSN i.e. harmonised system of nomenclature; where all transactions are identified by these codes and rate of GST applied according to those codes. Hence this makes governments to manage data of transacted items in symmetrical and systematic manner so that government can obtain useful information from these data to administer and regularize the regime.
there are various rates of GST introduced by government as per the section of taxpayers as well as types of commodities or services.
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