My salutations to all, many people must have come to mind that what is gst? What are the types of GST? In India, a lot of tax is paid, but what type of tax is GST, today we will know in detail.
What is the meaning of GST?
The full name of GST is Goods and Service Tax which is a replacement tax of Excise Duty, VAT, Services Tax and other indirect taxes. In simple language, other indirect taxes like Excise Duty, VAT, Service Tax have been removed and replaced by one. The tax system GST was started so that all those indirect taxes can also be collected.
When was the GST system started?
Actually, the GST scheme was first done in the year 2000.
Atal Bihari Bajpayee’s government at the time of the then government of India. GST was proposed. At that time the Finance Ministers of all the states of India had formed a committee to prepare the GST structure based on the experience of the VAT structure of their respective states. Examine all aspects and prepare reports on thresholds, exemptions, taxation of inter-state supplies and taxation of services.
It took 17 years to develop this new tax system and finally got approval on the Lok Sabha and Rajya Sabha in the year 2017 and on July 1 of that year, GST was brought into law across the country.
Which indirect tax was removed from GST?
Central Tax :-
Central Excise Tax (Excise Duty)
Central Sales Tax
Service Tax
Additional Duties of Customs
Additional Duties of Excise
Excise Duties levied under the Textiles and Textiles Products
State Tax :-
Purchase Tax
Central Sales Tax
VAT
Surcharges and CESS
Entry Tax
Taxes on Lottery, Gambling and Betting
Taxes on Advertisements
Type of GST
There are 3 types of GST
CGST – When any goods are sold within a state, then the GST which is collected by the Central Government of India.
SGST When some goods are sold within a state, then along with the central government, the state government also has to pay tax. The tax we pay to the state government is called SGST or State GST.
IGST When any goods are sold between two states, the tax collected by the central government is called IGST.
In simple language, if any goods are sold within a state, then both the central government and the state government have to pay tax. (CGST + SGST) And when goods of one state are sold in another state, then only the central government has to pay tax. (IGST)
Benefits of GST
One Nation One Tax Law
Before the introduction of GST, the tax system used to be very complex. In each of the states of the country, their own tax laws used to run. It used to be different in the states. Due to all this, the states were benefited and it had a bad effect on the economy of the country. Therefore, by imposing the same tax law for the whole country, the differential tax system should be stopped in all the states. Gaya and the country’s economy improved slightly.
control over the price of goods
The tax system before GST used to levy a lot of tax on goods, as mentioned on the above point, each stage of production of a commodity was taxed till it was sold to the final consumer. Due to the passing of various stages of tax on a commodity, its price automatically increased, but with the help of GST, the price of the goods worked a little.
Small Businesses Benefited from GST Composition Scheme
In order to encourage less tax and tax compliance, composition scheme under GST was introduced. Small business owners registered under the scheme are required to pay a certain percentage of tax on their business. Also, unlike regular GST taxpayers Small businesses registered under the composition scheme are required to file a quarterly return. The following are the tax rates under the composition scheme:
Small businesses with a turnover of Rs 1.50 crore will pay a direct GST rate of 1%. They will now file only one tax return.
Small service providers with an annual turnover of Rs 50 lakh will now pay 6% GST instead of 18%.
Simplified the system of tax return
There were many indirect taxes on the previous tax system, so the registered businessmen for different indirect cars had to face many compliances.
Product Duty Return – Monthly / Quarterly depends on the scale of the business unit. (Large Business, EOU or SSI)
Service Tax – Half Yearly Return
Value Added Tax – Monthly/Quarterly depending on the state which is responsible for collecting VAT.
I do not have to go through so many castes to return tax under GST. And anyway, due to the online system, GST registration and return filing became even easier.
What is the full form name of GST?
Full form of GST Goods and Service Tax
Who can file GST?
Only those whose annual income is 20 lakhs or more have to pay GST.
How many times do I have to file GST in a year?
every month of the year.
What happens if GST is not filed on time?
Penalty of 10% of the tax amount payable subject to a minimum of Rs.10,000.
Conclusion
It is certain that due to the impact of GST, the country’s economy has improved a bit and it has become easier for the taxpayers to return the tax. so guys today we What is GST? I have tried to understand about it in detail and if you liked this post, then definitely tell by commenting and share it with your friends. Thank you.
Today we will know through this article that GST Number Kaise Le? How to get GST Number? And what is its process? Ever since GST has been implemented from 1st July 2017, many shopkeepers, businessmen and people starting their own startup are needing to get GST number? But many people do not know how to get the GST number?
Through this article, we will tell you how to get GST number very easily? GST Number Kaise Le? What is its process? As you would know that earlier the tax structure used to be very complicated because earlier you had to pay service tax, VAT and excise duty.
But the Government of India has brought GST to eliminate this problem. Whose abbreviation is Goods and Services Tax, let’s know
What is GST?
The full form of GST is Goods and Services Tax. That is, the Goods and Services Tax, earlier the Government of India used to tax goods and services separately. But after the introduction of GST, now you have to pay the tax of goods and services together. Since the earlier methodology used to be very complicated as the consumer had to pay tax separately for goods and separately for services.
This put a heavy burden on the consumer. To solve all these problems, the Government of India introduced the concept of GST. If the definition of GST is given in one word, then GST is a comprehensive tax on goods and services. It is a reform of indirect taxes. Under which the concept of one nation one tax and one market is realized. Various indirect taxes levied on goods and services have been subsumed into a single tax under GST.
In short, the main goal of GST is to eliminate economic barriers and establish a national common market by bringing uniformity in tax rates and procedures.
GST Number Kaise Le?
To get GST number, you must have legal documents like PAN card, Aadhar card as well as year electricity bill as well as hard copy of your house tax as well as the rented house in which you are living. Took office
His NOC paper as well as email and phone number is required. So today through this article we will know how to get GST number? What is its process? What is the difficulty in that process? What is its solution?
How to get GST Number?
First of all you have to turn on your internet data.
Then you have to open Chrome browser on your device, after that you have to type gst.gov.in in it.
When the website of gst.gov.in opens, then you have to click on the page on the GST Portal.
When you open the page of GST Portal, then you have to fill up the form, you have to fill up Part A of the application first to fill up the form. In which you will be asked for your PAN number, mobile number and your email ID.
When you fill your mobile number and email id. Then a message will come on your email, OTP will be there in that message. You have to copy that OTP and then come to the GST portal and paste it in the option with that OTP.
Your Part A application will then be verified by e-mail.
Then you have to upload the necessary documents, in the necessary documents like PAN card, electricity bill, water bill, house tax bill, etc., you will have to upload the document.
When you upload the requested document then you will get a number you can access Part B using that number and then you fill Part B.
Then you will get the registration number of your application.
After this the GST officer will verify the documents submitted by you. To see if the documents mentioned in the PAN card, Aadhar card and electricity bill are correct? If it is ok you will be notified via email.
If everything is fine in the document, then the GST officer will either reject or accept the application made by you within 3 days.
If any other document is needed then a message will be sent to your email. You can send the requested document on that email.
After this process the GST officer will allot your GST number.
It is worth noting that you do not have to submit any fake documents to get the GST number. Otherwise the GST officer can also take action against you.
Why GST was needed?
(1) Cascading effect was created because of tax on tax. This not only increased the cost of production but also caused inflation.
(2) Different tax regimes existed in different states, as a result of which Integrated National Market could not be established.
(3) Different types of taxes and different types of tax rates created complexity in the economy.
(4) Complex tax structure encourages tax evasion i.e. tax compliance cost is high and tax base becomes narrow.
(5) Central VAT and State VAT were not used for each other’s liability, which required more capital for production.
(6) Due to the complex tax system in India, the Indian tax system could not harmonize at the international level, as a result of which foreign investors were discouraged.
What are the features of GST?
(1) GST means a tax on the supply of goods or services or both
(2) It is a dual tax system in which both the central and state governments simultaneously levy taxes on the same tax base. The tax to be collected by the Central Government will be called CGST and the tax to be collected by the State Governments will be called SGST.
(3) IGST shall be denominated and collected by the Central Government on the import and interstate supply of goods, i.e. the import shall be treated as an inter-state supply and IGST shall be applicable in addition to customs duty on imports.
(4) Alcohol for human consumption is kept out of GST.
(5) GST on petroleum products shall come into force from such date as may be recommended by the GST Council.
(6) The rates of GST shall be determined by the GST Council.
(7) Compensation of potential loss due to GST to different states will be done by the Central Government by paying 100% compensation for the next 5 years. The revenue for 2015-16 will be made the basis for giving compensation.
Benefits of GST
Consumers will get the following benefits from GST.
decrease in inflation
Increase in purchasing power
logical increase in market demand
What profit will the trader get?
Producers encouraged by increase in consumer demand
Easy tax compliance with simple and transparent tax system
promotion of international trade
Reduction in cost of production through input tax credit
Reduction in taxation due to single tax regime.
What will be the benefit to the economy?
Uniformity in the tax laws of the Central Government and the State Government with the establishment of a unified national market.
harmonized with the international tax system
promotion of foreign direct investment
information about the real state of the economy
Gross Domestic Product i.e. GDP growth potential
Helping to compete in the international market
What are the benefits to the tax system?
Improving tax compliance.
Expansion of tax base.
Reduction in tax evasion.
increase in revenue collection
Due to technology based reduction in human intervention and establishment of Transparency and Responsibility Tax system.
What is GST Council?
It is a constitutional body. It is headed by the Union Finance Minister. And the finance ministers of all the states and union territories participate as members. In the council, the vote of the central government is one-third and that of the states is two-third in India and the council takes its decision by a three-fourth majority.
What are the functions of GST Council?
To recommend the subsuming of various taxes levied by the Central Government, State Government and local governments under GST alone.
To recommend the goods and services which can be exempted from GST.
To recommend the date from which GST can be levied on petroleum products.
Determining the threshold line below which exemption from GST can be given if the turnover is less.
Establishment of special provisions in respect of North Eastern Hill States.
To recommend a special group of tax for collecting additional resources during any natural calamity.
To recommend the model GST law, principles for imposition of GST, division of IGST and defining the place of supply.
What is GST Network?
Technology will be used for implementation of GST. Therefore, the GST Network was established as the infrastructure for this. This organization will arrange the necessary information and technology for GST.
And with the help of this, taxpayers will be able to pay their liability in digital format. It is a non-government and non-profit organization, in which at present the share of central government, state government and private sector is 24 percent and 25 percent and six percent respectively. The aim of GST is not only to simplify the compliance process but also to facilitate the tax regime.
GST Portal has been developed by GSTN Institution through which taxpayers will be able to pay their tax liability in a time bound manner and at the same time GSTN provides the facility of registration to the taxpayer. It is a central portal to calculate IGST.
What is the constitutional provision related to GST?
(1) In sub-section 12 of article 366, the definition of goods is given in
(2) The definition of services is given in sub-section 26A of article 366.
(3) Article 246 Clause a has been written that Parliament and every State Legislature are empowered to make rules related to GST, although only Parliament will have the power to make rules on the inter-state supply of goods and services.
(4) It is written in Article 269 (A) that the Central Government shall have the right to levy and collect IGST etc. on the inter-state supply of goods and services and it shall be divided between the Center and the States on the basis of the recommendation of the GST Council.
(5) According to Article 270, the amount collected by the Center under GST shall be divided between the States. Which will be divided on the recommendation of the Finance Commission.
(6) Article 279(A) states that the GST Council shall be constituted by the President within 60 days of the commencement of the GST Act.
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Before the introduction of GST, many types of taxes were levied in the country, due to which things became cheaper in some states and expensive in some states, so that is why the government implemented GST to maintain the same tax rate in all countries. If you do not know about GST and if you want complete information about it, then definitely read this article till the end.
What is GST?
The full form of GST is the Goods and Services Tax. GST Before that, many types of taxes applied. Such as the Direct Tax under which Income Tax, Corporation Tax, Property Tax, Gift Tax, Wealth Tax, etc. all of these used to come (is still there) and the Indirect Tax under which the Customs Tax, the Consumption Tax, the Tax on Services, the Sales Tax are applied. etc. There were a total of 17 types of taxes, all of these taxes were merged to form GST.
Its full name is Central Goods and Service Tax (Central Goods and Services Tax). As the name suggests, this tax is collected by the central government. This type of tax is levied in every state and union territory. For example, if an item costs Rs 5000 in Rajasthan, then GST of 18% is levied on it. So this 9% will be given to Rajasthan and 9% to the central government.
S-GST
Its full name is State Goods and Service Tax (State Goods and Services Tax). This type of GST is collected by a state. It seems to be within a state. Suppose an item comes to Punjab for Rs. 5000 then it attracts tax of 18%. So out of this 9% GST will be levied by Punjab and 9% will be levied by Central Government. If the price of that article becomes Rs.5900 then out of the tax of Rs.900, Rs.450 will be levied by Punjab and Rs.450 by the Central Government.
UT-GST
Its full name is Union Territory Goods and Service Tax (Union Territory Goods and Services Tax). This type of tax is collected by the union territories. Suppose an item came to Delhi to be sold for Rs 5000, now the Delhi government will levy a tax of 18% on it, out of which 9% will be taken by the Delhi government and 9% by the central government. Its price will be Rs 5900, out of which Rs 450 will be taken by the central government and Rs 450 will be taken by the Delhi government.
I-GST
Its full name is Integrated Goods and Service Tax (Integrated Goods and Services Tax). This type of GST is levied on inter-state trade. Suppose an item comes from Madhya Pradesh but it is sold in Uttar Pradesh. So a tax of 18% is levied on this item. Out of which 9% will be taken by the Uttar Pradesh government and 9% by the central government. In this type of GST, that state does not get a share, the state from which the goods come, that state gets employment, it is a matter of profit for that state.
How much business is required for GST registration?
As per the Goods and Services Tax Act, 2017, any business whose turnover is Rs.40 lakhs or more will have to register for GST. For North-Eastern and hill states, the turnover limit for GST registration is Rs.10 lakh.
What was the need of GST?
Before the introduction of GST, tax was charged differently in every state, the price of the same item was expensive in one state and cheaper in another state. The tax system was very chaotic, hence the need for GST was felt and uniform tax system was implemented throughout the country. GST is called “One Nation One Tax” (One Nation One Tax).
Who will have to pay GST?
Whose annual transaction is 20 lakhs.
doing business from one state to another
online business
What is GST Return?
GST Returned is a type of document in which the tax payer (meaning the businessman) has to give his income details, this income details are taken by the Tax Administrative Authority. These are of the following types
GST R1
GST R 2
GST R 2a
GST R 3b
GST R 4
GST R 9
What are the features of GST?
GST is an indirect tax.
It is levied on almost all goods and services (except petrol, liquor and household items).
It is destination based consumption tax.
Treating imports as inter-state supplies
Treating exports as zero rate supply.
What is GST Slab?
GST slab means how much GST will be levied on each item. As if
0%- milk, agriculture related items
5%- Sugar, Newspaper, Coffee, Coal etc.
12% – Butter, mobile, juice etc.
18% – hair oil, iron, cream, steel etc.
28% – Shampoo, make up, perfume etc.
Petrol, liquor, gas, electric bills have been kept out of GST.
What is GST Identification Number?
It is a 15 digit number in which the starting 2 digits are related to the state, and the middle 10 numbers are the PAN card numbers, the last 3 digits are the special numbers.
This number is given by GSTN (GST Network) in 1 week.
aadhar card number
pan card number
mobile number
E-mail
rent agreement
password size photo
cancel check
From these documents you can get GST number online.
How much fee is to be paid for GST registration?
No fee is charged by the government for registration, you can also register yourself by visiting the online GST portal. However, if you get the registration done with the help of an e-friend or a lawyer, then they can take the fee, although there is no fee set by the government for this.
What are the benefits of GST?
Household items such as milk, salt, sugar cereals, these items will now attract 0% tax, before the introduction of GST, text was charged on these items.
Before GST, tax had to be paid on tax, such as if you buy a product from one state, then you had to pay tax for it, and if you sell the same product in another state, then there you also have to pay tax for it. After the arrival of GST, tax would have to be paid in only one state where you would sell that goods, where you would have to pay IGST.
After the introduction of GST, all the work will be done by computer, there will be no paper work, this will reduce corruption and those who used to evade tax will not be able to do it now.
After the introduction of GST, if the price of a product decreases, then its full benefit will be to the consumers, not to a big trader.
After the introduction of GST, the use of indigenous goods will increase because if we import a product from another country, then along with custom duty, IGST will also have to be paid, due to which that product will become expensive, so because of this we will use more indigenous goods. So it will be successful Make in India.
GST will develop a respect tax system across the country which will reduce corruption to a great extent.
Disadvantages of GST
Although there is no loss of GST as much as there are benefits of GST, it has only one major disadvantage that 17 indirect taxes which were collected earlier have been merged to form GST, due to which the states will suffer loss in revenue from this, the Central Government will compensate it. will be done in 5 years.
What is GST Council?
Decisions related to GST are taken by this council, its structure is as follows.
President – Finance Minister of the country
State Finance Minister (Member)
Finance ministers of all states (28)
The Finance Ministers of the Union Territories (where there is a Legislative Assembly) thus have a total of 33 members.
Hope this post was helpful for you. and hope you are now What are the types of GST, what is the need of GST, how much business is required for GST registration and complete information related to GST Would have known We appreciate your suggestions and contributions. Do let us know by commenting in the comment box below to give your suggestions. thank you!
FAQ
Where was GST first introduced?
GST was first introduced in France in 1954.
GST was implemented on the recommendation of which committee?
GST was implemented on the recommendation of Kelkar Committee.
When was it signed by the President?
On 8 September 2016.
When was GST implemented?
GST came into effect on 1st July 2017.
Under which constitutional amendment GST came into force?
GST came into force under Constitution Amendment 101.
