GST ----- A step by Mr Modi!!???!?!?!

GST--- Goods and Service Tax.

 

Notice

We know that it has been late to post an article on this topic but there was a reason, that there were many changes made throughout the year. So finally everything is settled and all the rules are decided.
So here comes--- What's GST?

GST? 

1)Goods and Services Tax is an indirect tax which was forced on 1 July 2017 and was applicable throughout India which replaced multiple complicated taxes like VAT , levied by the central and state governments.
2)The GST works on GST Council and , its Chairman is the Finance Minister of India. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12% ,18% and 28%.
3)There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.
4)GST replaced a slew of indirect taxes with a unified tax and is therefore set to dramatically reshape the country's 2 trillion dollar economy.

History.

1) The history has some different points which are brought together in a small simple table brought up by cleartax.com. The team has brought up a wonderful table where everything is explained simply great. (Not an INFO ACADEMY initiative.)

 This was a huge chain started from not only 2016 but from 2000 itself !

Advantages.

GST is a very simplified tax and so has many pros. All these are listed below

Main Components-

There are 3 taxes applicable under GST--- CGST., SGST and IGST.

• CGST: Collected by the Central Government on an intra-state sale (Eg: Within Maharashtra)
• SGST: Collected by the State Government on an intra-state sale (Eg: Within Mahaashtra)
• IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)

Working-

 

Here we will have an example that will help us to know how does GST actually works.

• Let us assume that a dealer in Gujrat had sold the goods to a dealer in Punjab worth Rs. 50,000. The GST rate is 18% comprising of only IGST.

In such case, the dealer has to charge Rs. 9,000 as IGST. This IGST revenue will go to the Central Government.

• The same dealer sells goods to a consumer in Gujrat worth Rs. 50,000. The GST rate on the good is 12%. This rate comprises of  CGST at 6% and SGST at 6%.

The dealer has to collect Rs. 6,000 as Goods and Service Tax. Rs. 3,000 will go to the Central Government and Rs. 3,000 will go to the Gujrat government as the sale is within the state.

Notice - 2

So this session has extended a lot , but explaining a tax is quite difficult. Please cooperate and the main thing we have to do is to LEARN. So just continue the flow of reading.

HSN CODE?

The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.

HSN contains 6 digit uniform code that classifies 5000+ products and which is accepted worldwide.

Now what's SAC?

SAC codes are codes issued by CBEC to uniformly classify each services under GST. Each service has a unique SAC. These SAC codes can be used in invoices created by you for the services you delivered.

 

 SUMMARY-

This tax has really changed everything in a correct way. Weather everyone has bad things to say about this tax they will understand the importance of it later. Actually this tax should have been brought long time ago but was extended. At last, "everything happens, happens for our own good".

Taking this thing in mind we end our session here. Hope you liked this article. Question me-- session 1 is fully made . Will soon post it!

Thanks!!!!