Overview of GST – Goods and Services Tax
GST – Goods & Services Tax was introduced by Finance Minister of India, It was launched on the midnight of 30th Jun 2017. GST is applicable throughout India which is replaced multiple taxes levied by the central and state governments. GST – Goods & Services Tax is India’s biggest reform in 70 years of independence. Many leading countries are using single, comprehensive tax on manufacturing, sale and service.
Under Goods and services Tax (GST) goods and services is taxed at 0%, 5%, 12%, 18%, 28% and there is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. Goods and services Tax (GST) is replaces indirect taxes like service tax, VAT, CST, Luxury tax, excise duty, entertainment tax, entry tax etc.,
In 1954, France was introduced goods and services tax (GST), In 63 years abour 160 countries in the world have adopted goods and services tax (GST) as through goods and servives tax can raise revenue in the most transparent and neutral manner.
What is mean by Goods and Services Tax (GST)
Goods and Services Tax is a tax on goods and services with value addition at the each stage having comprehensive and continuous chain of set of benefits from the producers or service providers point up to the retailers level where only the final consumer should bear the tax.
Aim of Goods and Services Tax (GST)
– Single Tax system
– Consumption based tax system instead of manufacturing
– To eliminate the cascading effect of indirect taxes on single transaction
– Reduce tax evasion and corruption
– Maximise Productivity
– Increase compliance
– Reduce economic disotrions
Some important points to be noted in Goods and Services Tax (GST)
– Goods and Services Tax will be implemented on 01.07.2017
– Types of Goods and Services Tax (GST), 1. Integrated GSt, Central GST which wills replace CST, SGST which will replace VAT
– Goods and services tax registration certificate will be issued online
– Cannot file revised returns, once filed on 20th is final
-Tax payments can be done by E-payments and also via Credit and debit cards
– Under VAT tax sales and purchases returns will be filed monthly whereas under Goods and Services Tax system, it has to be done for every sales and purchases bills.
– All business books and records to be maintained daily basis
– Travel expenses for business related, the bills to be claimed in the name of firm
– Cannot claim credit for material in stock beyond 1 year