What is Goods and Services Tax (GST)?
GST is destination based tax on final consumption of goods & Services. It levied on each stage of value addition. It is a value-added tax. It replaces all indirect taxes of states and central government Except custom.
What exactly is the concept of destination based tax on consumption?
The final tax would accrue in the state of consumption and hence final tax will be paid over the place of consumption.
Which are the commodities proposed to be kept outside the purview of GST?
The supply of liquor, petroleum products like crude, Petrol, high speed diesel, natural gas and aviation turbine fuel have been kept outside the GST looking the state interest.
What will be status of Tobacco and Tobacco products under the GST regime?
Tobacco and tobacco products would be subject to GST.
What type of GST is proposed to be implemented?
In India GST has dual tax structure means above the certain turnover limit on supply of intra-sate transaction by a taxable person both CGST & SGST applicable. Whereas in case of interstate transaction IGST shall be applicable.
Why is Dual GST required?
In India both state and central have been assigned the powers to levy and collect the tax. therefore, be in keeping with the Constitutional requirement of federalism dual GST system has been introduced.
Which authority will levy and administer GST?
Respective states & UT will levy and administer SGST/UTGST and central will levy and administer the IGST & CGST.
How a particular transaction of goods and services would be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
With the implementation of GST in India this not only a tax reforms but in fact this is going to business reforms. The Tax revenue of government is expected to be increased. Also price of necessary product will go down and entire economy will be benefited from this tax reforms.
What are the benefits which the Country will accrue from GST?
With the implementation of GST in India this not only a tax reforms but in fact this is going to business reforms. The Tax revenue of government is expected to be increased. Also price of necessary product will go down and entire economy will be benefited from this tax reforms.
Who is liable to pay GST under the proposed GST regime?
A person who has annual turnover of Rs. 10 lac in north east states and 20 lac in rest of India, Mandatorily required to apply for GST registration. Business activity like import, e-commerce, Non-resident taxable person & Causal dealer has to apply for GST registration without any turnover limit.
How will the goods and services be classified under GST regime?
HSN (Harmonised System of Nomenclature) code shall be used for defining the goods under GST registration and SAC for defining the services under GST Act.
How will imports be taxed under GST?
Imports of Goods and Services will be deemed as inter-state supplies and IGST will be levied on import of goods and services into the country. Input credit shall be allowed on IGST paid at the time of import of goods. No credit for custom shall be allowed.
How will Exports be treated under GST?
Export of goods and services are treated as zero rated supply and no tax will be payable on export of goods or services. However, refund of input tax credit shall be allowed.
What is the scope of composition scheme under GST?
A taxable person who has reason to believe that in a financial year his annual turnover will be less than Rs. 50 lac then he can apply for composition scheme. This scheme will assist small retailer for hassle free tax compliance and take advantage of lower tax rate. Tax under composition scheme is expected to be around 0.5% to 4%.
What is the purpose of Compliance rating mechanism?
As per Section 149 of GST Act, a new concept of compliance rating has been introduced to improve the business eco-system. Compliance rating will available for every public so that every business can take wise decision about the new relationship with a business. Higher compliance rating will enable you fasted tax refund and maximum use of online processing system.
