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
- GST eliminates the cascading effect of tax
- Higher threshold for registration
- Composition scheme for small businesses
- The simple and easy online procedure
- The number of compliances is lesser
- Defined treatment for E-commerce operators
- Improved efficiency of logistics
- The unorganized sector is regulated under GST
Disadvantages of GST
- Increased costs due to software purchase
- Being GST-compliant
- GST will mean an increase in operational costs
- GST came into effect in the middle of the financial year
- GST is an online taxation system
- SMEs will have a higher tax burden
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.
|S. No.||Member of GST Council||Government||Member of GST Council||Portfolio||Date|
|1||Govt. of India||Smt Nirmala Sitharaman||Minister of Finance and Corporate Affairs||31-05-2019|
|2||Govt. of India||Shri Anurag Singh Thakur||Minister of State (Finance and Corporate Affairs)||31-05-2019|
|3||Andhra Pradesh||Shri Buggana Rajendranath||Minister for Finance and Legislative Affairs||18-06-2019|
|4||Arunachal Pradesh||Shri Chowna Mein||Minister for Finance and Investment||19-06-2019|
|5||Assam||Dr. Himanta Biswa Sarma||Finance Minister||17-09-2016|
|6||Bihar||Shri Sushil Kumar Modi||Deputy Chief Minister||02-08-2017|
|7||Chhattisgarh||Shri T. S. Singh Deo||Minister for Commercial Taxes||07-01-2019|
|8||Delhi||Shri Manish Sisodia||Deputy Chief Minister||20-09-2016|
|9||Goa||Shri Mauvin Godinho||Cabinet Minister||19-03-2019|
|10||Gujarat||Shri Nitin Patel||Deputy Chief Minister||13-01-2018|
|11||Haryana||Shri Dushyant Chautala||Deputy Chief Minister-in-charge of Excise and Taxation Department||11-12-2019|
|12||Himachal Pradesh||Shri Jai Ram Thakur||Chief Minister||27-12-2017|
|13||Jammu & Kashmir||Shri K.K. Sharma||Advisor to Honorable Governor ( I/C Finance )||17-12-2018|
|14||Jharkhand||Dr Rameshwar Oraon||Minister for Planning cum Finance, Commercial Taxes Department and Department of Food, Public Distribution and Consumer Affairs Department||28-02-2020|
|15||Karnataka||Shri Basavaraj Bommai||Minister for Home||09-09-2019|
|16||Kerala||Dr.T.M.Thomas Isaac||Finance Minister||22-09-2016|
|17||Madhya Pradesh||Shri Tarun Kumar Bhanot||Minister for Finance||09-01-2019|
|18||Maharashtra||Shri Sudhir Mungantiwar||Finance Minister||19-09-2016|
|19||Manipur||Shri Yumnam Joykumar Singh||Deputy Chief Minister||01-04-2017|
|20||Meghalaya||Shri Conrad Kongkal Sangma||Chief Minister||06-03-2018|
|21||Mizoram||Shri Lalchamliana||Minister, Taxation Department||04-01-2019|
|22||Nagaland||Shri Metsubo Jamir||Minister of Urban Development & Municipal Affairs||25-04-2018|
|23||Odisha||Shri Niranjan Pujari||Minister of Finance and Excise||12-06-2019|
|24||Puducherry||Shri V. Narayanasamy||Chief Minister||16-09-2016|
|25||Punjab||Shri Manpreet Singh Badal||Finance Minister||29-03-2017|
|26||Rajasthan||Shri Shanti Kumar Dhariwal||Minister for Local Self Government, Urban Development & Housing , Law & Legal Affairs and Parliamentary Affairs||08-01-2019|
|27||Sikkim||Shri B. S. Panth||Minister of Tourism & Civil Aviation and Commerce & Industries||14-06-2019|
|28||Tamil Nadu||Shri D. Jayakumar||Minister for Fisheries and Personnel & Administrative Reforms||27-02-2017|
|29||Telangana||Shri Md. Mahmood Ali||Minister for Home, Prisons & Fire Services||20-12-2018|
|30||Tripura||Shri Jishnu Debbarma||Deputy Chief Minister||09-03-2018|
|31||Uttar Pradesh||Shri Rajesh Agarwal||Finance Minister||27-03-2017|
|32||Uttarakhand||Shri Satpal Mahraj||Minister for Irrigation, Flood Control, Minor Irrigation, Rain Water Harvesting, Water Management, Indo-Nepal Uttarkhand River Projects, Tourism, Pilgrimage & Religious Fairs, Culture||23-07-2019|
|33||West Bengal||Dr. Amit Mitra||Finance Minister||20-09-2016|
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.
Suggest Best Book
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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
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.