GST: What is GST? GST News, GST Rates, GST latest updates
GST: What is GST? GST News, GST Rates, GST latest updates

GST: What is GST? GST News, GST Rates, GST latest updates

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.

Multi-staged as it is, the GST is imposed at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

And with one GST you can create as many businesses as you want.

What is GST?

Goods and Services Tax (GST) is an indirect tax that was rolled out on July 1, 2017. It is levied on the supply of goods and services across the country. It has brought about uniformity in the indirect tax structure by replacing all the indirect taxes that existed in the pre-GST regime such as VAT, service tax, excise duty, etc. Simply put, GST has incorporated the concept of “One Nation One Tax.

Documents required for GST Registration

The main documents for GST registration include

  • PAN card of business
  • Proof of business registration or incorporation certificate
  • Identity and Address proof of Promoters/Director with photographs Photographs and address proof of persons in charge
  • The business’ address proof
  • Bank account statements/canceled cheque
  • Aadhaar card if applicable
  • Digital Signature
  • Letter of Authorization/Board Resolution for Authorized Signature

The implementation of GST has the following challenges:

  • Challenging time frame of rolling out GST by 1st July 2017
  • Infrastructure and Technology up-gradation of tax system particularly of the States
  • Up-gradation of IT systems of trade & industry

The following Final GST Rules and Formats have been approved by the GST Council and have been placed in the public domain:

  • Registration Rules and Formats
  • Return- Rules and GSTP Formats, Mismatch Formats, Return Formats
  • Invoice- Debit and Credit Notes Rules
  • Payment Rules and Formats
  • Refund Rules and Formats
  • Input Tax Credit Rules
  • Valuation Rules
  • Transitional Rules and Formats
  • Composition Rules and Formats
  • Accounts and Record Rules

Advantage & Disadvantage of GST

Advantages of GST

  1. GST eliminates the cascading effect of tax
  2. Higher threshold for registration
  3. Composition scheme for small businesses
  4. The simple and easy online procedure
  5. The number of compliances is lesser
  6. Defined treatment for E-commerce operators
  7. Improved efficiency of logistics
  8. The unorganized sector is regulated under GST

Disadvantages of GST

  1. Increased costs due to software purchase
  2. Being GST-compliant
  3. GST will mean an increase in operational costs
  4. GST came into effect in the middle of the financial year
  5. GST is an online taxation system
  6. SMEs will have a higher tax burden

Implementation

The GST was launched at midnight on 1 July 2017 by the President of India, and the Government of India. The launch was marked by a historic midnight (30 June – 1 July) session of both the houses of parliament convened at the Central Hall of the Parliament. And now it is applicable in the whole country.

Though the session was attended by high-profile guests from the business and the entertainment industry including Ratan Tata, it was boycotted by the opposition due to the predicted problems that it was bound to lead for the middle and lower class Indians.

GST Council Members

S. No.Member of GST CouncilGovernmentMember of GST CouncilPortfolioDate
1Finance MinisterGovt. of IndiaSmt Nirmala SitharamanMinister of Finance and Corporate Affairs31-05-2019
2State Finance MinisterGovt. of IndiaShri Anurag Singh ThakurMinister of State (Finance and Corporate Affairs)31-05-2019
3Finance MinisterAndhra PradeshShri Buggana Rajendranath  Minister for Finance and Legislative Affairs18-06-2019
4Finance MinisterArunachal PradeshShri Chowna MeinMinister for Finance and Investment19-06-2019
5Finance MinisterAssamDr. Himanta Biswa SarmaFinance Minister17-09-2016
6Finance MinisterBiharShri Sushil Kumar ModiDeputy Chief Minister02-08-2017
7Shri T. S. Singh DeoChhattisgarhShri T. S. Singh DeoMinister for Commercial Taxes07-01-2019
8Finance MinisterDelhiShri Manish SisodiaDeputy Chief Minister20-09-2016
9Finance MinisterGoaShri Mauvin GodinhoCabinet Minister19-03-2019
10Finance MinisterGujaratShri Nitin PatelDeputy Chief Minister13-01-2018
11-HaryanaShri Dushyant ChautalaDeputy Chief Minister-in-charge of Excise and Taxation Department11-12-2019
12Finance MinisterHimachal PradeshShri Jai Ram ThakurChief Minister27-12-2017
13Shri K.K. SharmaJammu & KashmirShri K.K. SharmaAdvisor to Honorable Governor ( I/C Finance )17-12-2018
14-JharkhandDr Rameshwar OraonMinister for Planning cum Finance, Commercial Taxes Department and Department of Food, Public Distribution and Consumer Affairs Department28-02-2020
15-KarnatakaShri Basavaraj BommaiMinister for Home09-09-2019
16Finance MinisterKeralaDr.T.M.Thomas IsaacFinance Minister22-09-2016
17Shri Tarun Kumar BhanotMadhya PradeshShri Tarun Kumar BhanotMinister for Finance09-01-2019
18Finance MinisterMaharashtraShri Sudhir MungantiwarFinance Minister19-09-2016
19Finance MinisterManipurShri Yumnam Joykumar SinghDeputy Chief Minister01-04-2017
20Shri Conrad Kongkal SangmaMeghalayaShri Conrad Kongkal SangmaChief Minister06-03-2018
21Shri LalchamlianaMizoramShri LalchamlianaMinister, Taxation Department04-01-2019
22Finance MinisterNagalandShri Metsubo JamirMinister of Urban Development & Municipal Affairs25-04-2018
23Finance MinisterOdishaShri Niranjan PujariMinister of Finance and Excise12-06-2019
24Finance MinisterPuducherryShri V. NarayanasamyChief Minister16-09-2016
25Finance MinisterPunjabShri Manpreet Singh BadalFinance Minister29-03-2017
26Shri Shanti Kumar DhariwalRajasthanShri Shanti Kumar DhariwalMinister for Local Self Government, Urban Development & Housing , Law & Legal Affairs and Parliamentary Affairs08-01-2019
27Finance MinisterSikkimShri B. S. PanthMinister of Tourism & Civil Aviation and Commerce & Industries14-06-2019
28Finance MinisterTamil NaduShri D. JayakumarMinister for Fisheries and Personnel & Administrative Reforms27-02-2017
29Shri Md. Mohamood AliTelanganaShri Md. Mahmood AliMinister for Home, Prisons & Fire Services20-12-2018
30Finance MinisterTripuraShri Jishnu DebbarmaDeputy Chief Minister09-03-2018
31Finance MinisterUttar PradeshShri Rajesh AgarwalFinance Minister27-03-2017
32Shri Satpal MahrajUttarakhandShri Satpal MahrajMinister for Irrigation, Flood Control, Minor Irrigation, Rain Water Harvesting, Water Management, Indo-Nepal Uttarkhand River Projects, Tourism, Pilgrimage & Religious Fairs, Culture23-07-2019
33Finance MinisterWest BengalDr. Amit MitraFinance Minister20-09-2016
GST Council Member

What is the difference between VAT and CST?

VAT: Value added tax or VAT is an indirect tax levied at various stages of production. It is an indirect tax because it is paid by the vendors from the amount collected from their customers; Therefore, customers are paying tax indirectly. In India, VAT rates vary for most products and even vary from state to state.

Typically, all goods fall into four or more schedules with VAT rates ranging from 1% to 15%. Dealers or manufacturers will have to apply for VAT registration, at which time their turnover is Rs 5 lakh per year (this amount also varies from one state to another).

GST: GST, or Central Excise, is an indirect tax levied on interstate sales. CST is not levied at each stage of production, and the sale of goods is also not levied if they are sold in the same state.

Only when a manufacturer decides to take goods to another state, GST should be imposed. While applying for VAT registration, you can apply for CST registration at a cost of only Rs 25.

Note : Patanjali product GST rate list

Suggest Best Book

Textbook on Goods and Services Tax Laws

Official Guide to Financial Accounting Using Tally.ERP 9 with GST

GST in INDIA – A Comprehensive Guide Book

See also

List of Items Removed from 28% GST Slab Rate: 31st GST Council Meeting

List of Items Removed from 28%, 18% & 12% GST Slab GST Rate Reduced from 28% to 18%

  • TVs and Monitor screen of up to32 inches screen size
  • Pulleys, transmission shafts, and cranks, gearboxes, etc., falling under HS Code 8483
  • Re-treaded or used pneumatic tires of rubber;
  • Power banks having lithium-ion batteries note that Lithium-ion batteries are currently at 18%
  • Parts and accessories for the carriages for disabled persons
  • Digital cameras and video camera recorders

GST Rate Reduction on Other Goods (18% to 12%)

  • Cork roughly squared or debagged
  • Articles of natural cork
  • Agglomerated cork

GST Rate Reduction on Other Goods (18% to 5%)

  • Marble rubble

GST Rate Reduced from 28% to 5%

  • Parts and accessories for the carriages for the disabled person

GST Rate Reduction on Other Goods (12% to 5%)

  • Natural Cork
  • Walking Stick
  • Fly ash Blocks

Suggest :

Exemption under Section 10(23C) vis-a-vis Section 11

Download Editable PDF of Income Tax TDS Challan ITNS 281 A.Y 2020-21 Latest Version

Income Tax Return For Partnership Firms

How to file Income Tax Returns for AY 2020-21: Step by step guide

Qus. Is it necessary to have GST number to register in MSME?

Ans. NO, Is it not necessary to have GST number to register in MSME

Qus. We are required to pay GST payment, electricity bill etc. translation into English

Ans. Let’s see.

Qus. GST is over or not.

Ans. Never.

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