GST 2021 Guides - Everything About Goods & Service Tax
GST Council to finalise GST Rates on various goods and services, GST Council Decide 4 GST Rates Slabs for India, Now GST Rates are finalised i.e GST Rates in India is 5%, 12%, 18% & 28%.
Important GST Articles
"Goods and Service Tax FAQ's"
What is GST?GST is a destination based tax and levied at a single point at the time of con sumption of goods or services by the ultimate consumer. GST is based on the principle of value added tax. Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, traders, sale and consumption of Goods and Services at national level and is expected to remove the cascading effect of tax-on-tax which is prevalent presently. The term GST is defined in Article 366 (12A) to mean “any tax on supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption”
Which all taxes will GST replace?
What are the Benefits of GST?
- Mitigation of cascading taxation
- Cascading tax effect (meaning tax on tax) will no longer exist
- Elimination of multiple taxes and double taxation
- Input Tax Credit will be easier to avail
- Returns and compliances will be consolidated
- Creation of unified national market:
How to Migrate for GST?Every person registered under any of the earlier laws and having a valid PAN shall be issued a certificate of registration on a provisional basis. You can enroll for GST via the common portal of GST. CAknowledge.in Team can also help you with your enrollment. For more details about GST Registration click here.
Can I have multiple GST Registrations?
How many Returns are required to be filed under GST?A normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly, there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS)
Do I need to enrol for GST?
Is Input Tax Credit Available under GST?Yes. Yes, under the Revised Model GST Law the input tax credit on capital goods is allowed in one installment except in respect of pipelines and telecommunication towers fixed to earth by foundation or structural support including foundation and structural support thereto. One of the fundamental features of GST is the seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country.
What is Composition Scheme
Who is an existing taxpayer?An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act. Existing taxpayers include taxpayers already registered under :-
- Central Excise
- Service Tax
- State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
- Entry Tax
- Luxury Tax
- Entertainment Tax (except levied by the local bodies)
What is HSN Code?
Why is HSN Code required?Without HSN, the system will not be able to pick tax rate for goods declared at the time of registration.
GST Rates in India 2021
Historical background of GSTA task force that was headed by Vijay L. Kelkar the advisor to the finance ministry, indicated that the existing tax structure had many issues that would be mitigated by the GST system.But the First Discussion Paper on Goods and Services Tax in India was presented by the Empowered Committee of State Finance Ministers dtd.10th Nov,2009.
ADVANTAGES OF GST
- Single Taxation
- Lesser compliances
- Elimination of cascading effect of tax
- Online filing of returns which makes it easy for everyone
Components of GST
- CGST: Collected by the Central Government on an intra-state sale (Eg: transaction happening within same state like Rajasthan )
- SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within same state like Rajasthan )
- IGST: Collected by the Central Government for inter-state sale (Eg: transaction happening between two states like Rajasthan and Gujarat )
|Transaction||As per GST||As per earlier acts applicable||Comments|
|Sale within the State||CGST + SGST||VAT + Central Excise/Service tax||Revenue will be shared equally between the Centre and the State|
|Sale to another State||IGST||Central Sales Tax + Excise/Service Tax||There will only be one type of tax (central) in case of inter-state sales. The Centre will then share the IGST revenue based on the destination of goods.|
Non applicability of GST on certain products:
- Petroleum products such as
- Petroleum crude;
- High-speed diesel
- Motor spirit (commonly known as petrol);
- Natural gas;
- Aviation turbine fuel
- Alcoholic liquor for human consumption
- Use in manufacturing or processing
- Use in the telecommunication network or in mining or in the generation or distribution of electricity or any other power
Credit Mechanism under GST
- IGST against IGST
- CGST against IGST
- SGST against IGST