Goods and Services Tax is referred as GST. It is an indirect tax that was implemented to a variety of previous indirect taxes, it include the value added tax, service tax, purchase tax, excise duty and others. GST is a tax that Indian government imposes on the delivery of specific products and services. There is just one tax that is imposed in India.
Manufacturer: The manufacturer is responsible for paying GST on both the raw materials used to create the product and the value added during production.
Service Provider: In this case, the service provider is responsible for paying GST on both the product’s purchase price and the value that has been added. The manufacturer’s tax payment, however, may be subtracted from the total amount of GST that must be paid.
Retailer: The retailer is responsible for paying GST on both the merchandise they received from the distributor and the margin they added. However, the total amount of GST that must be paid may be reduced by the retailer’s tax payment.
Consumers: GST needs to be paid on the purchased item.
GST History
The Goods and Services Tax went into effect in India on July 1st, 2017. But the process of putting in place the new tax system started a long time ago. A committee was formed in 2000 by Atal Bihari Vajpayee, who was India’s prime minister at the time, to develop the GST law. A task force determined in 2004 that the new tax structure should be implemented in order to improve the current tax system.
The Finance Minister recommended the implementation of the GST on April 1, 2010 and the Constitution Amendment Bill was enacted in 2011 to make this possible. The Standing Committee began debating GST in 2012 and presented its report on GST one year later. Arun Jaitley, the country’s then-new Finance Minister, reintroduced the GST bill in 2014, and the Lok Sabha approved it in 2015. However the bill did not pass in the Rajya Sabha, so it’s implementation was postponed.
The GST was implemented 2016 and both houses of Congress approved the revised model GST statute. In addition, the Indian President approved. Four more GST Bills were passed by the Lok Sabha in 2017 and were subsequently approved by the Cabinet. Following the passage of four more GST Bills by the Rajya Sabha, the new tax system went into effect on July 1st, 2017.
Types of GST in India
The four different kinds of GST are given below:
Central Goods and Services Tax: CGST is taxed on the intra-state supply of products and services.
State Goods and Services Tax: SGST, like CGST, is charged on the sale of products or services within a state.
Integrated Goods and Services Tax: IGST is taxed on inter-state transactions of products and services.
Union Territory Goods and Services Tax: UTGST is taxed on the supply of products and services provided in any of the Union Territories in the country, viz., Andaman and Nicobar Islands, Dadra, Daman and Diu, and Nagar Lakshadweep, Haveli, Chandigarh. UTGST is levied along with CGST.
GST registration
Any business that qualifies for the GST must register on the GST site established by the Indian government. A special registration number called a GSTIN will be given to each registered entity.
Registration is required for all buyers, sellers,s and service providers. A company must register for GST if it earns Rs. 20 lakh or more in total revenue within a fiscal year. Processing takes 2 to 6 working days.
Understand your GSTIN, or GST Identification Number.
- The GSTIN is a unique 15-digit number assigned to each taxpayer.
- The PAN and the state in which you reside will be used to determine your GSTIN.
- Following are some of the primary applications of GSTIN:
- The number can be used to apply for loans.
- The GSTIN can be used to obtain refunds.
- The GSTIN facilitates the verification procedure and makes it simple.
- Corrections are possible.
- Visit https://services.gst.gov.in/services/searchtp to check a GST number online.
- To access the details, enter the GSTIN that is shown on the invoice in the search box, then complete the captcha.
GST Certificate
A GST Certificate is a legal document that the relevant authorities provide to a company that has registered for the GST system. Under this system, enterprises having a yearly revenue of at least Rs. 20 lakh and some special businesses must register. Form GST REG-06 is used to provide the GST registration certificate.
From the official GST Portal, you may get the GST Certificate if you are a registered taxpayer under this system. The certificate is not physically handed out. It is only accessible digitally. GSTIN, Legal Name, Trade Name, Business Constitution, Address, Date of Liability, Period of Validity, Types of Registration, Particulars of Approving Authority, Signature and Specifications of the Approving GST Officer are all included on the GST Certificate.
GST Returns
A GST Return is a form that a taxpayer must submit to the government containing details about their income. The tax liability of the taxpayer is determined using this data. Registered dealers are required by the Goods and Services Tax to file their GST returns with information on their purchases, sales, input tax credit, and output GST. Businesses must submit two monthly returns in addition to their annual return.
GST Rates
The GST Council has given different goods and services varying GST rates. While certain goods are available for purchase at no GST, other goods have GST rates of 5%, 12%, 18%, and 28%. Since the new tax system went into effect in July 2017, the GST rates for products and services have altered a few times.
| Name of Item | Applicable GST Rate |
| Mobile Phone | 12% |
| Sanitizer | 18% |
| Gold Jewellery | 3% |
| Two wheeler | 28% |
| Car | 28% |
Read More Article
- Stocks Vs Mutual Fund, Which one better?
- Advantage and disadvantage of Credit Card
- Stock Markets Vs Share Markets
- What is cryptocurrency and how does it work?
- How to improve your credit score rapidly
- How to choose right credit card for you.
- Different type of loan in India
- Term Insurance and ULIP: What is differences and their benefits
- According to Dow Jones Futures, Bear Market Eyes New Leg Down; Apple, Eli Lilly Show Relative Strength
- How to survive the worst bear market of all time
- Wall Street landmark: ETF popularity reaches record levels
- Benami Transactions (Prohibition) Act, 1988
- Asset Disclosure in Income Tax Returns Is Required
- Employee Provident Fund (EPF) , EPS and EDLIS
- Stock market – Wikipedia
