Let’s started with
What is GST- Goods and Service Tax
Goods and Services Tax (GST) is an indirect tax that was turned out on July 1, 2017. It is imposed on the supply of goods and services the nation over. It has achieved a consistency in the indirect tax structure by supplanting all the indirect taxes that existed in the pre-GST regime, for example, VAT, service tax, Excise duty, and so forth Basically, GST has joined the idea of “One nation One Tax.”
As per GST rules, it is mandatory for a business that has a turnover of above Rs.40 lakh to register as a normal taxpayer. This is alluded to as the GST registration measure. The turnover is Rs.10 lakh for businesses that are available in hill states and North-Eastern states. The GST registration cycle can be finished inside 6 working days.
The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and became effective on first July 2017.
Under the GST regime, the tax is collected at each retail location. On account of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.
The GST rates on various goods and services are consistently applied the nation over. Goods and services have, be that as it may, been sorted under various section rates for tax payment. While luxury and solace goods are ordered under higher slabs, necessities have been remembered for lower and nil section rates. The principle point of this grouping is to guarantee uniform conveyance of abundance among inhabitants of India.
Advantage of GST
GST has fundamentally taken out the cascading impact on the offer of goods and services. Expulsion of the cascading impact has impacted the cost of goods. Since the GST regime dispenses with the tax on tax, the cost of goods decreases.
Additionally, GST is for the most part technologically determined. All the activities like registration, return documenting, application for refund and reaction to notice should be done online on the GST portal, which quickens the cycles.
Components of GST
The components of gst are following:
CGST:CGST collected by the Central Government
SGST: SGST is the tax collected by the State government
IGST: IGST is a tax collected by the Central Government
Input Tax Credit (ITC) under GST
An Input Tax credit implies that when a business individual or a merchant is paying tax on yield, he/she can diminish the tax previously paid on input (purchase).
Service Tax.
ITC can be guaranteed simply by businesses registered under the Goods and Services Tax Act. Additionally, all separate providers must be registered under the act for you to be qualified to profit ITC.
