GST - Goods & Service Tax

GST - Goods & Service Tax

·         W.e.f  01.07.2017

·         Biggest reform in the Indirect tax regime.

·         One Nation  - One Tax  - One Market

·         Formulae is IGST(5%) = CGST (2.5%) + SGST/UTGST (2.5%)

·         Single Tax - Right from the Manufacturer to consumer.

·         Transaction based tax.

·         Five tax slabs  - 0%, 5%, 12%, 18% and 28%

·         GST - governed by GST council which consists of Finance Ministers of Union Government and All states.

·         Changed  from Origin based tax to Destination based Tax.

CGST	Levied by the Central Govt
SGST	Levied by the State Govt
UTGST	Levied by the UT Govt
IGST	Levied by the Central Govt on interstate supplies and on Imports of Goods

·         The following Central and State taxes are subsumed/included/merged into GST:

a)      Central Excise Duty (including additional duties of Excise)

b)      Service tax

c)      CVD (Levied on imports in lieu of Excise Duty)

d)      SACD (Levied on imports in lieu of VAT)

e)      Central Sales Tax(CST)

f)       Surcharges and Cesses.

g)      Octroi/Entry tax

h)      Purchase tax

i)        VAT

j)        Entertainment tax

k)      Luxury tax

l)        Tax on lottery, betting and gambling

·         The following taxes are not subsumed/ not included into GST

1.      Income Tax

2.      Customs duty

3.      Export duty

4.      Property tax

5.      Stamp duty

6.      Seniorage charges

GST is not applicable  on Petroleum products, Electricity and Alcohol.

·         The list of exempted Goods and Services are kept to a minimum and harmonised for Centre and States as far as possible.

·         The credit permitted to be utilised in the following manner:

a)      ITC of CGST allowed for payment of CGST & IGST in that Order.

b)      ITC of SGST allowed for payment of SGST & IGST in that Order.

c)      ITC of IGST allowed for payment of IGST, CGST & SGST.

GSTIN

ü  Full form : Goods & Service Tax Identification Number

ü  Assigned to every GST dealer.

ü  15 digit GSTIN based on State wise PAN (Permanent Account Number)

1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
State Code		PAN number of the Tax payer										No of registration within the state	Z	Check Code

Advantages:

·         Create unified common national market for India.

·         Giving a boost to Foreign Investment and “Make in India Campaign”

·         Boost export and Manufacturing activity and leading to substantive economic growth.

·         Help in poverty eradication by generating more employment.

·         Uniform SGST and IGST rates reduce the incentive for tax evasion.

·         Simple tax based system online

·         Uniform prices followed throughout the country.

·         Transparency prevails in taxation system.

·         Higher threshold achieved for registration.

·         Composition scheme for small business

·         The number of compliance is lesser.

·         Defined treatment for E-commerce operations

·         Improved efficiency of logistics

·         Unorganised sector is regulated under GST

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