What is GST? What is GST
The full form of GST is (Good and Service Tax), it means (Goods and Service Tax) in Hindi.
This is the advantage of GST being levied on the sale of goods and services across the country, that the tax on any one item will be uniform across India.
Meaning if any trader in India sells that item, he will have to pay an equal tax.
When a goods came out of the factory, it was subject to excise duty i.e. Excise tax.
If the same goods are going from one state to another, then entry tax was charged as soon as you entered.
And when it was time to sell goods, then sales tax was charged, in many cases Purcharse tax was also charged.
If that goods are going to the hotel or restaurant, then service tax was charged separately on it, which means if any goods have to reach the consumer, then many duties and taxes had to be passed before reaching.
Features of GST | Major feature Of GST
1.Tax on Consumption
GST Tax has to be paid by the user of the goods and services.
This means that if the shopkeeper gives any item or item, then he writes GST separately in it,
Which buyer has to pay full amount including GST.
2. No tax will have to be paid on tax.
Before GST, many different taxes were levied, often taxes were also levied on top of the tax.
There are many similar and services that used to fall in two or more categories.
But now this will not happen.
Because now the GST is to be finally paid by the consumer only.
If someone deposits in the middle, then his money will be adjusted back from the tax credit system.
3.Tax Credit System | Tax Credit System
The whole chain is involved from the manufacture of an item to reaching the hands of the consumer. Goods are bought and sold many times. According to the rules of GST, fixed tax will have to be paid on every purchase and sale in the supply chain.
If there was no Tax Credit System, then things would have become very expensive due to taxation at every level.
In this system, every next buyer in the supply chain gets back the tax paid by the previous seller.
You can adjust your GST through Tax Credit System while filing GST Return every month.
4. No arbitrariness on tax. No Arbitrary Rates
Earlier, the state governments used to levy tax on every item sold in their own free will. Rates also kept their own. But it doesn’t happen now. The GST Council has been prepared for any changes in the provisions of GST or in the rate. It will be headed by the Union Finance Minister and the Finance Ministers of the states will be its members.
Benefits of common man, businessmen and government from GST
For common man For Common People
There is no unnecessary increase in the cost of goods due to the abolition of various types of taxes and the abolition of tax on tax. The prices of goods will also not increase much.
There will be less tax on things of common need. Things that are more useful to the common man will be available cheaply.
For businessmen For Businessmen
Due to all documents being online, documents cannot be presented by distorting them. In case of any mistake or lost, it will be possible to rectify it online. No need to make rounds of offices.
Due to the different structure of taxes in each state, it was not easy for the businessmen to understand it.
Many officers and employees also used to take wrong advantage of more rules. Now businessmen will not have to go through these hassles.
For the government For Government
1. It will be necessary to tally the receipts of purchases and sales at each stage.
Only then the businessmen will be able to get the benefit of the Tax Credit deposited in the earlier stages.
It will be necessary to bill everyone and present their receipt later.
Black marketing will not happen.
2. Work is not shown at many places in the chain from production to sale. Now such people who are left out in GST will also be added to this chain of tax.
3. As before, the same was available in different states at different prices. But now it will not happen.
3 Types of GST | Three Types Of GST
1. Central Goods and Services Tax. Central Goods and Service Tax (CGST)
If the transaction of goods is happening between two of the same state, then the tax (CGST) has to be paid to the central government.
2. State Goods and Services Tax |State Goods and Service Tax (SGST)
If the transaction of goods is happening between two of the same state, then tax (SGST) has to be paid to the state government.
3. Integrated Goods and Services Tax. Integrated Goods and Service Tax (IGST)
If the transaction of goods is happening between two different states, then the tax (IGST) has to be paid to the central government.
Note: If there is a deal within the state, then 2 taxes will have to be paid on that deal. First CGST to the central government and secondly SGST to the state government.
If there is a deal between two states, then only one tax will have to be paid, IGST to the central government.
Suppose a company bought some goods from a trader. The deal is happening within the state, if the price of the goods is Rs 5 lakh, then it will attract 18% GST, that trader will collect 5 lakh and 18% GST from that company, now that businessman will pay tax at 2 places, meaning to the central and state government. 45,000 to the center and 45,000 to the state government.
GST Rate | Rate Of GST
different types of clothes
There are 5 slabs of GST for you.
Zero, Zero, 5%, 12%, 18%, and 28%.
The least tax is levied on the most needed things, and the most comfortable and less used things get the maximum tax.
For example, 28% GST is levied on Air Conditioner, Refrigerator, Makeup etc. Zero tax is levied on raw materials like cereals and fresh vegetables etc. Education and health facilities have been kept out of tax.
How much commission does Digital Gramin Seva give on GST Service? Digital Gramin Seva GST Service Commission
If you want to provide GST facility then you have to register on Digital Gramin Seva Portal.
To register click on this link :-
After registering, you get ID password from which you can start the work of providing GST facility.