July 22, 2021
GST

1.What is GST? | Types of GST? | All about GST

All over answers are here so, please be with this blog and read the full article, you can understand easily about GST and you can explain easily to your friends and family.
First of all, some basic about GST is here:

GST
GST for india

GST said ‘’ one nation, one text’’, but it’s an incomplete truth because the only indirect text is replaced with GST, still, Direct tax like income tax, corporation tax, property tax, inheritance tax, gift tax, wealth tax, etc are alive.

There were two types of tax before GST: 1. Direct tax and 2. Indirect tax, some are listed below

Direct taxIndirect tax
1. income tax1. Custom duty
2. corporation tax2. Excise duty
3. gift tax3. Service tax
4. wealth tax4. Sales tax
5. inheritance tax5. VAT
  
Direct tax and Indirect tax

2.What is Direct Tax:

Direct tax is a tax an individual pay to government on basis of income and profits, and it is directly paid to the government. Income-tax, corporation tax, property tax, inheritance tax and gift tax, or taxes on assets are examples of direct tax.

3.What is Indirect Tax or GST?

Indirect tax
indirect tax of india

It is a tax paid to the Government on goods and services and not on the income, profit, or salary of an individual and it can be shifted from one taxpayer to another. Custom duty, excise duty, service tax, sales tax, VAT, etc are a total of 17 different types of example of indirect tax.
BUT now indirect tax is replaced by GST:

4.Some details of GST:

1.THE first GST start by France in 1954 
2Implement in India 1 July 2017
3India implements a dual GST model, meaning that taxation is run by both the central and state governments.
417 types of indirect tax are involved in GST
5As per the Government, Imprisonment of 5 years for Offences under GST if the taxpayer is not able to pay above 5 crores of tax.  
68 September 2016 Indian president had signed the GST bill
7I-GST is implemented for inter-state supply in Article 269A
8Article 279A: GST Council- The GST Council is an apex member committee to switch, reconcile, or to acquire any law or regulation
GST in detail

5.Who Should File GST Returns?

Table of Contents

1. GST returns must tax be filed by every business units whose turnover above 20 lakhs

2. if you doing business between one state to another state of rupees 1 or above, then you must be filed GST

3. Online business-like E-Commerce company, then you must be filed GST
for example Zomato, swigy, Amazon, Flipkart, etc E-Commerce platform.

6.What is SGST, CGST, UTGST, IGST?
Types of GST

1. C-GST (Central goods and service tax):

C-GST is the tax that are impose by central government.

For example, if you made a product in Gujarat state and also sell the same product in Gujarat state, then you have to pay C-GST and S-GST (State goods and service tax). This means a total of 18% tax you need to pay as per the taxes slab, 9% of tax goes to the central government and another 9% tax goes to the state government.

2. S-GST (State goods and service tax):

S-GST is the tax that are impose by State government.

For example, if you made a product in Gujarat state and also sell the same product in Gujarat state, then you have to pay C-GST and S-GST (State goods and service tax). This means a total of 18% tax you need to pay as per the taxes slab, 9% of tax goes to central government and another 9% tax goes to state government.

3. UT-GST (Union territory goods and service tax):

UT-GST is the tax that are impose by Union territory government.

For example, if you sell a product in union territories like Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, National Capital Territory of Delhi, Jammu and Kashmir, Lakshadweep, Ladakh, and Puducherry, then you have to pay UT-GST and C-GST as per taxes slab. This means a total of 18% tax you need to pay as per the taxes slab, 9% of tax goes to the central government and another 9% tax goes to the UT government.

4. I-GST (Integrated goods and service tax):

Tax is applied to the business between two-state. For example, you made a product in Gujarat and sell it in Rajasthan state then you need to pay tax to the central government and state government of Rajasthan.

7.What is the input tax and output tax?

Input tax:   Tax paid on purchases.

For example, you have bought goods worth 100 rupees and you give 10% GST on that goods, that means you give 110 rupees for that goods.

Goods = ₹100

100 + 10% GST = 110             (it is called INPUT GST)

Where, GST = 10% of ₹100 = 10

Output tax:    Tax collected on sales.

For example, you sell the same goods to someone on price of 150 (₹40 your profit) and the buyer give 10% GST on that goods, that means buyer gave 165 rupees for that goods.

Goods = 150

150 + 10% GST = ₹165           (it is called OUTPUT GST)

Where, GST = 10% of ₹150 = 15

But conclusion is that you already given 10% of GST when the time of you bought a goods, so you don’t need to pay 10% of GST when you sold a goods to someone, this time you have to pay only OUTPUT – INPUT = Whatever.

GST pay = output – input = ₹5

               =      ₹15 – 10   =    ₹5

You have to return ₹5 to the government after you sold product.

8.What is GSTR?

GST return is a document that will include all the details of your income, sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax) which a taxpayer is required to file with the tax administrative authorities. Once you file GST returns, you’ll need to pay the resulting liabilities (money that you simply owe the government).

9.GST slab rate list:

Exempt5%12%18%28%
Food grains,
gur,
Sugar, tea,Butter, ghee,Hair oil, soap,Consumer
durables
milk, eggs,
curd,
coffee, edible
oil, coal,
mobiles,toothpastecars,
cement,
unpacked
paneer and
natural honey
skimmed milk
powder, milk
food for babies,
cashewcapital goods,chewing gum,
fresh vegetablescondensed milk,
packed paneer,
newsprint,
almonds
sausages
industrial
intermediaries,
custard
powder,
atta, besan,
maida,
umbrella, PDS
kerosene, LPG
Brooms,
fruit juice,pasta corn
flakes, jams,
pan
masala,
vegetable oil,
prasad
Beet
sugar, Natural
graphite
packed
coconut
soups, Ice
cream, toilet
and facial
tissues
perfume,
shampoor
make up
common salt,
contraceptives
Chalk,
Natural
calcium
phosphates
water,iron &
steel, fountain
pen
fireworks,
motorcycles
Fish seeds,
Betel leaves
Thorium oxalateagarbatti, Bio-
gas,
Indian
katha,
Fluorine,
chlorine,
Molasses,
Avgas, Hair
cream
Cane jaggeryNatural
graphite
Bio-
gas,
chlorine,explosives
GST slab rate

Petrol, diesel, gas, electricity, wine/alcohol etc are not included in GST.

10.GSTIN- GST identification number:

11.GSTN (Goods and service tax network):

Goods and Service Tax Network (GSTN) is a private sector company whose owners are the Central Government, the State Governments, and Financial Institutions.
GSTN will administer the GST.
GSTN Characteristics:
• Single agency to administer GST that will replace multiple Central and State Government departments.
• The tax administration will shift online with the facility to reconcile with bank accounts.

12.Below is the detail of shareholders of GSTN:

ShareholderShareholding
Central government24.5%
State government & EC24.5%
HDFC10%
HDFC bank10%
ICICI bank10%
NSE strategic investment co.10%
LIC housing finance ltd11%
Total100%
shareholders of GSTN

13.Some myths and realty of GST

Mythsrealty
1. Need to generate all invoices on
computer/ internet only
1. Invoices can be generated
manually also
2. Need internet all the time to do
business under GST
2. Internet would be needed only
while filling monthly return of GST
3. Only have a provisional id but waiting
for final id to do business
3. Provisional ID will be your final
GSTIN number
4. My item was earlier exempt, so I’ll
need new registration
4. Continue doing business, get
registered within 30 days
5. There are 3 returns per months to
be filled
5. Only 1 return with 3 parts – 1st part
filed by dealer, other 2 parts will be
auto-populated by computer
6. Even small dealers will have to file
invoice wise details in the return
6.  Those in retail business (B2C) need
to file only summary of total sales
7. New GST rate is higher compared to
earlier VAT
7. All invisible taxes like Excise Duty have
been subsumed in GST, so it appears like higher.
myths and realty

14.What are the benefits of GST:

  1. Final price of goods to be lower.
  2. A relatively large segment of small retailers will either be exempted from tax or will suffer very low tax rates.
  3. Generate more employment.
  4. The average tax burden on firms to come down.
  5. it Will boost foreign investment.

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