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.
Also Read: How To Fill Online Income Tax Return
What are the types of GST?
There are four types of GST such as –
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.
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.
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.
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
- 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.
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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.