Find us on
  • Home
  • Beauty
  • Health
  • Cooking
  • Technology
  • Science
  • Business
  • General

Know about GST-India

Know about GST-India

Category : general , 7 months ago

Goods and services tax is one of the different tax reforms in the history of independent India. The government has launched GST portal for existing VAT, service tax, and excise taxpayers for smooth transition system.

GST is one of the indirect tax on the supply of goods and services from the manufacturer to consumer.  GST combines all the taxes into one and subsumes all the indirect taxes. This is done for all the central level and state level taxes. The nature of the GST invoice India is that it clubs almost all indirect taxes that are levied by Central and State Governments and taxes only the final customers.

25 Things to know about GST

1. Under GST, Only one registration number per state called GSTIN i.e. Goods and Service Tax Identification Number provided.

2. There are three taxes under GST; Central Goods & Service Tax (CGST), State Goods & Service Tax (SGST), Integrated Goods and Service Tax (IGST).

3. Central Goods and Service Tax (CGST) to replace Central Excise, Service Tax, Additional Excise Duty, Special Additional Customs Duty (SAD), Countervailing Duty (CVD) along with various cess and surcharges

4. Taxes which are not subsumed under CGST are Basic Customs Duty, other import duties, excise duties on petroleum products and tobacco products

5. State Goods and Service Tax (SGST) – taxes merged with SGST are Value Added Tax, Entry Tax, Purchase Tax, Luxury Tax, Entertainment Tax, Octroi, and Various Surcharges & Cess

6. Taxes which are not subsumed under SGST are Stamp Duty, Electricity Duty, Vehicle Tax, and Royalty, State taxes on petroleum and alcoholic products and Entertainment Duty levied by local bodies.

7. Integrated Goods and Service Tax (IGST) will replace Central Sales Tax for all inter-state transactions under GST

8. Under GST, Goods and Services share the same taxes.  GST Is applicable to whole of India including Jammu and Kashmir

9. Under GST there is no concept of Tax on Tax like VAT computed on item price + Excise duties

10. GST is a destination based tax i.e. taxes will go to the state where the goods are consumed.

11. In India we have adopted dual GST i.e. the Central Government and the State Government will be levying and collecting taxes due to constitutional provisions in our constitution.

12. Under GST all tax payers have to file single return for the state and the central taxes (SGST, CGST & IGST)

13. Under GST there is no concept of a manufacturer, first stage dealer, registered dealer, service provider etc., anyone who registers under GST is called a tax payer.

14. Registration Number under GST is called GSTIN and it is 15 digit number, the first two digits are for the state code, next 10 digits PAN, 13th digit is for business vertical, 14th digit is blank and 15th digit is check digit

15. For existing tax payers under Central Excise, VAT or Service Tax the data will be migrated and the tax payer will be given 6 months for furnish all the required information.

16. Three basic requirements for obtaining registration under GST are, PAN Number, e-mail id and mobile number. PAN will be validated online for information with CBDT Servers, Mobile number is required for sending OTP (one-time password) and email id for verification through a separate OTP.

17. Under GST each and every location of business has to be registered as an additional place of business. Registration number has to be displayed in a prominent place for each place of business

18. According to Draft Registration Rules, all registered tax payers have to display their GST Registration Number i.e. GSTIN on the name board in all the locations of the place of business.

19. A Tax Payer can have up to 35 registration numbers in the same state based on his line of business / business vertical

20. Suo moto registration – During survey, search, inspection, enquiry if a concerned officer finds business is not registered, he can issue temporary registration number and this process is called suo moto registration under GST.

21. The portal for GST registration is allowing only one GST registration per PAN, in case if anyone has multiple businesses under same PAN have to approach their concerned Jurisdictional Authority.

22. Cancellation of Registration under GST is very complicated. The taxpayer has to file an application for cancellation along with the closing stock and pay all the taxes due and file valid returns for cancellation of application to be accepted.

23. for imports SAD and CVD is replaced by IGST and importer can avail full credit of IGST.

24. Under GST, Unique Identification Number (UIN) has to be obtained by bodies registered under United Nations and foreign embassies for claiming refund of GST on their purchases

25. The concept of payment of tax on manufacture of goods, on sales, provision of service is replaced by a single tax point called “Time of Supply” in GST.