So, let\u2019s first understand what GST is. So, basically Goods and Service\nTax is an indirect tax used in India on the supply of goods and services. It is\na multi-stage tax as it is imposed on every step in the production process, but\nis refunded to all the parties involved in it and hence, paid by the final\nconsumer of the product. So, the final consumer is the one who bears the amount\nof GST charged on the product. Thus, it is also called the \u201cdestination-based\ntax\u201d. And as a destination-based tax, it is collected from the point of\nconsumption and not from the point of origin like the previous taxes.<\/p>\n\n\n\n
The main idea of GST being introduced\nin India was the tax burden that falls both on companies and consumers. With\nthe previous tax system, there were multiple taxes added at each stage of the\nsupply chain, without taking credit for taxes paid at previous stages. As a\nresult, the end cost of the product does not clearly show the actual cost of\nthe product and how much tax was applied. This cascading structure was too\ncomplex and inefficient. <\/p>\n\n\n\n
GST helped to integrate most taxes\ninto a single one, that is applied to the sale and purchase of goods and\nservices, with deductions for taxes paid at previous supply chain stages.\nBasically , GST is divided into 5 different tax slabs for the collection of tax\n\u2013 0%, 5%, 12% , 18% , 28% , based on the classification of the products with\nthe particular HSN (Harmonized\nSystem Nomenclature) code provided. However, there are some products\nlike- petroleum, alcoholic drinks, electricity which are not taxed under the\nGST and are instead taxed separately by the individual state governments, as\nper the previous tax system. GST registration is mandatory for any business whose\nturnover in a financial year exceeds Rs.20 lakh and Rs 10 lakhs for North Eastern and hill states. <\/p>\n\n\n\n
This\nstructure is predicted to be easier to track both for the government and\nbusiness owners. Based on the kind of\ntransaction, there are four types of GST- Central Goods and Services Tax\n(CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax\n(IGST), and Union Territory Goods and Services Tax (UTGST).<\/p>\n\n\n\n
- Central Goods and Services Tax (CGST)<\/strong><\/li><\/ul>\n\n\n\n
CGST is charged on\nthe intra state supply of products and services. The Central Government levies\nCGST and it is governed by the Central Goods and Services Tax Act. CGST has\neffectively replaced all the previous Central taxes such as Central Excise\nDuty, Customs Duty, Service Tax<\/a>, etc. It\nis charged to taxpayers along with SGST. The rate at which CGST is charged is\nusually the same as the SGST rate, and the revenue collected under CGST is\nremitted to the Central Government.<\/p>\n\n\n\n
- State Goods and Services Tax (SGST)<\/strong><\/li><\/ul>\n\n\n\n
SGST, like CGST, is\ncharged on the sale of products or services within a state. The State\nGovernment is responsible for the levy of SGST. This tax replaces all the\nprevious taxes such as Entry Tax, Value Added Tax, State Sales Tax,\ncesses, and surcharges. The revenue collected under SGST is remitted to the\nState Government.<\/p>\n\n\n\n
- Integrated Goods and Services Tax (IGST)<\/strong><\/li><\/ul>\n\n\n\n
IGST is charged on\ninter-state transactions of products and services. It is also levied on\nimports. The Central Government collects IGST and distributes it among states.\nIGST is levied when goods or services are transferred from one state to\nanother. The tax was implemented so that states would only have to deal with\nthe Union Government rather than dealing with each state.<\/p>\n\n\n\n
- Union Territory Goods and Services Tax (UGST)<\/strong><\/li><\/ul>\n\n\n\n
UTGST is levied on\nthe supply of products and services in any of the Union Territories in the\ncountry, – Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli,\nLakshadweep, and Chandigarh. UTGST is levied along with CGST.<\/p>\n\n\n\n
Thus, this system of GST has helped integrating the country through a\nuniform tax rate and has also, improved the collection of taxes as well as the\nboost in the economic development , by being an humongous transformation in the\ntechnological field with the introduction of the e-way bills and invoices .\nHowever, there are some businesses which are worsely affected and burdened by\nthe GST imposition like the textile industry and various small industries while\nfew of them like cement, FMCG , Pharmaceuticals etc have a positive impact of\nthe GST.<\/p>\n\n\n\n
In conclusion, GST has been a revolutionary tax system\nfor India. Most noteworthy, many experts hail it as one of the biggest tax\nreforms. <\/p>\n\n\n\n
BY \u2013<\/p>\n\n\n\n
Muskan\nLohia<\/p>\n\n\n\n
40217001718<\/p>\n\n\n\n
BBA- 5 MORNING B<\/p>\n\n\n\n
Be Our InTraders\u2019 Author for Free of Registration to InTraders\u2019 Conferences<\/a><\/h3>\n\n\n\n
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- Union Territory Goods and Services Tax (UGST)<\/strong><\/li><\/ul>\n\n\n\n
- Integrated Goods and Services Tax (IGST)<\/strong><\/li><\/ul>\n\n\n\n
- State Goods and Services Tax (SGST)<\/strong><\/li><\/ul>\n\n\n\n