Goods and Service Tax in INDIA
Ø GST is a tax-related
levy that is imposed on goods and services in India. The GST Act, 2017 was
passed by the parliament on June 3, 2017 and became applicable from July 1,
2017. The new indirect tax regime has replaced a host of state and central
taxes previously imposed on goods and services such as Value Added Tax (VAT) at
the central level and sales taxes at the state levels.
Ø The aim of GST is to
impose a single unified tax system across the country (except Jammu and
Kashmir) and transfer some power to the Centre from state governments.
Ø The tax was rolled
out in a phased manner covering 86 percent of manufacturing and services sector
as per provisional figures announced by the union finance ministry in March.
Components
of GST?
There are 3 taxes
applicable under this system: CGST, SGST &
IGST.
Ø CGST: Collected by
the Central Government on an intra-state sale (Eg: transaction happening within
Maharashtra)
Ø SGST: Collected by
the State Government on an intra-state sale (Eg: transaction happening
within Maharashtra)
Ø IGST: Collected by
the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)
GST rates in India:
Ø 0%, 5%, 12%, 18%, 28%
What
is GSTIN number?
GSTIN is GST identification number or
GST number. A GSTIN is a 15-digit PAN-based unique
identification number allotted to every registered person under
GST. As a GST-registered dealer, you might want to do GST Number (GSTIN)
verification before entering it in your GST Returns.
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