Introduction of GST
It is a system of indirect taxation in India, merging of all existing tax is into a single tax system. It was introduced as the the constitution (one hundred and the first Amendment) Act 2016. the GST is administereted and governed by the GST Council with the union finance minister of India as its chairman.
Purpose of GST
GST offers a single shot solution by adding a local levies into a one system. GST has various indirect taxes including Central excise duty, service tax, additional customs duty, and state level value added tax.
● States imposed different taxes with varying rates on same product. for example, Bike price will vary among States because of different rates of taxes such as VAT and Road taxes.
GST has removed all these, Virtually making India a single market. alcohol and tobacco remain outside GST. GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, replacing tax is levied by the central and state governments.
● The government through GST has build a stable tax Regime to address concern of the Indian industry and foreign investors. This method allows GST -registered business to claim tax credit to the value of GST, paid on purchase of goods and services as part of their nominal commercial activity.
● responsibility rest with single authority to levy tax on goods and services.
Exports are follows zero rated supply and imports are levied the same taxes as domestic goods and services to destination principal in sum to customs duty which is not subsumed in GST.
Characteristics Of Goods And Services Tax (GST)
1. GST is a Comprehensive Indirect Tax
2. GST is a Value Added Tax
3. GST Paid is not Cost
4. Uniform GST Rate on Goods And Services Across all states
Impact of GST
1. GST has favourable impact on industry and warehousing.
2. GST has a favourable impact on indian economy.
3. GST remove the double taxation in certain sector due to tax dispute on different transaction is for supply of goods and services.
4. Major benefit of GST are sectors like Automobiles, warehousing , and etc.
● Significance of GST
1. Introduction of GST is a steps in the reforms in taxation policy
2. Merging many Central and State taxes into a 'Single tax' system.
3. free movement of goods from one state to another state withou stopping at state border for state taxes.
4. The biggest advantage is in the terms of a reduction in overall tax burden on goods.
5. Reduction in paper work to large time consumed.
● Make in India
1. helps to create common national market for india,giving boost to foreign investment and "Make in India" Campaign.
2. Prevents cascading of taxes as input tax credit will available across goods and services at every stage of supply.
3. Generate more employment and increase GDP with gainful employment lead to substantive economic growth. it helpd in poverty removal by generating more employment and more financial resources.
● Some problems in GST
1. A lot of firms and individual are not aware of new tax system.
2. GST should be done by on computer or internet basis, so many peoples and firms are not fully computerized and they are facing technological problems.
3. In india small business firms pay tax and filing return their own saving cost , but after GST introduce small business profession also have to bear the additional cost for hiring experts.
4. All existing taxpayers registered under VAT, services tax and excise duty are required to furnish the details at GST common portal for the purpose of migrating themselves into GST regime.
● Objectives of Goods And Services Tax (GST)
1. Developing Common Nation Market
2. Ease of Doing Business
3. No Cascading effect of GST
4. To simplify indirect tav regime by having one tax and fewer rates of taxes
5. Better Tax Management
6. Goods becoming cheaper
7. Attracting Foreign Investors
8. Uplifting GDP
Classification Of Goods And Services Tax (GST)
1. Central GST (CGST)
CGST is levied on intra-state supply (supply within the state) of good and seevices along with SGST. In case of intra-state supply both CGST and SGST is levied at half of the prescribed rate of tax.
2. State GST (SGST) OR Union Territory GST (UTGST)
SGST (UTGST) is also levied on intra-state supply (supply within state) of goods and services along with CGST. In case of intra-state supply both SGST (UTGST) and CGST is levied as CGST and 9% as SGST (UTGST).
3. Integrated GST (IGST)
IGST is levied on inter-state supply (supply outside the state) of goods and services, import of goods and services into india and export of goods and services from india.
Categorising GST For Accounting Purpose
1. Input CGST
2. Input SGST
3. Input IGST
4. Output CGST
5. Output SGST
6. Output IGST
Conclusions
We provide short summary and some exam notes of all subjects and for all classes.this notes is related to class 12th commerce/arts indian economy notes.In our page we learn all classes subjects and different knowledge.our youtube channel also available so you get for information go to channel.now we work on application for all classes and easy way to get notes and pdf of exam idea so you ready to learn from our easy adda.
We belongs to araria bihar.behind this website hands of Bhola and Nadeem.we both belongs to Jnv.you can learn also from my youtube channel.youtube channel is "Easy Adda".
ConversionConversion EmoticonEmoticon