So, What Is This GST All About ?

GST India

 

The introduction of the Goods and Services Tax (GST) from July 1 will bring the country under one indirect comprehensive tax, right from manufacturer to the consumer.

The structure of this system and tax rates are common across the country. With efficiency gains and prevention of leakages the overall tax burden on most commodities will come down which will benefit for consumer.

Centre Goods and Services Tax (CGST) and State Goods and Services Tax (SGST):

Source : GSTINDIA
Image for representation only

There will be two components of GST – Central Goods and Service Tax (CGST) and State Goods Service Tax (SGST)

The Centre would levy and collect Central Goods and Services Tax, and States would levy or collect the same at their level.

The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage.

Similarly, the credit of SGST paid on inputs would allow for paying the SGST on output. No cross utilisation of credit would be permitted.

Interstate Goods and Services Tax (IGST) –

Source : GSTINDIA
Image for representation only

In case of interstate transactions centre will collect integrated goods and service tax (IGST). This system is built to ensure seamless input tax from one state to other.

The interstate seller should pay IGST on the sale of his goods to the Central government after adjusting credit of IGST, CGST and SGST on his purchases, in that order.

The exporting State will transfer to the Centre the credit of SGST used in payments of IGST.

The importing dealer will claim credit of IGST while discharging his output tax liability (CGST and SGST) in that state.

The Centre will transfer to the importing state the credit of IGST used in payments of SGST
Since GST is a destination based tax, all SGST on the final product will ordinarily accrue to the consuming state.

GST rates for goods at 0%, 5%, 12%, 18%, 28% to be levied on certain goods.

 

 

#Data/ Information Source- gstindia

# Readers are advised to check on the relevant Government of India sites on all matters pertaining to the GST regime. The details mentioned above are indicative in nature and/or subject to change based on GOI Notifications time to time. 

Ruturaj Mogali

Ruturaj Mogali

I m 🇮🇳, Thinker🤔
Reader📚
Journalist🖋
Music💕
Sanglikr🏡+Pune🏙=Khurrat+Agyakari
💖yourself 1st
Ruturaj Mogali

Comments

comments