Goods and Service Tax (GST)

Goods and Services Tax (GST) is a federal tax imposed on all the goods and services we consume in India. The first country to implement GST is France. It is levied at the point of supply and it is treated as a retail tax, unlike many other countries which have Value Added Tax (VAT) model of taxation. The tax rate is 18% (9% for the central govt. & 9% for the state govt.) on most products and it varies from 0 % to 28%. To find out more about what is GST, read this blog by the best marketing agency in Kochi.

GST Council

The GST council consists of representatives from the Central Government, the states, and the Union territories. GST council was launched on 2016 September 12. The council comprises 33 members who the President nominates on the advice of the Union Cabinet. The Council meets at least twice a month to review taxation policy, monitor compliance with constitutional provisions, review issues related to inter-state trade and commerce, and recommend changes in laws related to taxation or any other matter connected with taxation.

Introduction of GST in India

GST was introduced on 1st April 2017 in India for five years to help the government reduce its expenditure on subsidies. Article 246A has been added to the Constitution relating to GST. GST Bill was passed by Lok Sabha on 08 August 2016 and by Rajya Sabha on 03 August 2016. GST Rate Finder is a mobile app launched by the central government to find out the tax rate of goods and services subject to GST. 

Types of GST

• Central Goods and Services Tax (CGST)

Central Goods and Services Tax (CGST) is one of the key indirect taxes under the central government in India. It relates to goods, services, and intangibles supplied by a person resident in India to another person outside India. The tax will be levied on both parties at their final destinations. This article will give a comprehensive description of the Central Goods & Services Tax (CGST), its purpose, application, and exemptions. The rates for CGST are uniform across the country.

• State Goods and Services Tax (SGST)

State Goods and Services Tax (SGST) is a consumption tax levied by the state governments in the country on their own production, sale, distribution, and consumption of goods. It is a tax on goods and services purchased and consumed in your home state.

• Integrated Goods & Services Tax (IGST)

The Integrated Goods and Services Tax (IGST) is levied on the taxable supply of services or goods. This tax rate is also known as the supply tax. This tax is paid by the manufacturer, importer, and delivering organizations (agents) of goods and services, as well as suppliers of input tax credit claims.

• Union Territory Goods and Services Tax (UTGST)

Union Territory Goods and Services Tax (UTGST) is a new tax imposed on the Indian businesses within Union territories, which covers goods and services provided to the residents of the territory

CONCLUSION

The Goods and Services Tax (GST) is a tax levied by the Indian government, that when implemented, will replace most of the indirect taxes included in the current tax system. The new legislation aims to create a common Indian market across its 28 states while introducing a standard sales tax rate, which would give India one of the lowest sales tax rates in the world. To find out more about marketing, visit our blog by the top marketing agency in Kerala.