What is GST and how it works ?
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faizan khan
kavita123
Manoj
7 posters
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:00 pm
GST is also mainly technologically driven. All activities like registration, return filing, application for refund and response to notice needs to be done online on the GST Portal; this accelerates the processes.
- faizan khan
- Posts : 11332
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:00 pm
GST will unify a bundle of Indirect taxes like Excise, VAT, Central Sales Tax, Service tax, etc
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:00 pm
CGST: Collected by the Central Government on an intra-state sale (Eg: transaction happening within Maharashtra)
SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within Maharashtra)
IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)
SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within Maharashtra)
IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:00 pm
In the earlier indirect tax regime, there were many indirect taxes levied by both state and centre. States mainly collected taxes in the form of Value Added Tax (VAT). Every state had a different set of rules and regulations.
- faizan khan
- Posts : 11332
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:00 pm
GST will also disincentivise tax evasion, i.e., if you do not pay a tax on what you sell, you will not be able to receive the credit for taxes on your inputs. Also, you will buy only from those who have already paid taxes on their goods thus making tax system more transparent.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
In the earlier indirect tax regime, there were many indirect taxes levied by both state and centre. States mainly collected taxes in the form of Value Added Tax (VAT). Every state had a different set of rules and regulations.
- faizan khan
- Posts : 11332
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
GST is a destination-based tax and therefore all the taxes will be collected at the point of consumption. Subsequently, economic activities within the country will be simplified as the financial barriers among the States and between the Centre and States will disappear.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
Interstate sale of goods was taxed by the Centre. CST (Central State Tax) was applicable in case of interstate sale of goods. Other than above there were many indirect taxes like entertainment tax, octroi and local tax that was levied by state and centre.
- faizan khan
- Posts : 11332
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
Alcohol for the purpose of human consumption does not fall under the scope of GST at present
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
when goods were manufactured and sold, excise duty was charged by the centre. Over and above Excise Duty, VAT was also charged by the State. This lead to a tax on tax also known as the cascading effect of taxes.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
GST has removed this cascading effect as the tax is calculated only on the value-addition at each stage of the transfer of ownership.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:01 pm
indirect tax system under GST has improved the collection of taxes as well as boosted the development of Indian economy by removing the indirect tax barriers between states and integrating the country through a uniform tax rate.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:02 pm
Goods and Services Tax, there is a way to claim credit for tax paid in acquiring input. What happens in this case is, the individual who has paid a tax already can claim credit for this tax when he submits his taxes.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:02 pm
every time an individual is able to claim the input tax credit, the sale price is reduced and the cost price for the buyer is reduced because of lower tax liability.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:02 pm
The final value of the biscuits is therefore reduced from Rs. 2,244 to Rs. 1,980, thus reducing the tax burden on the final customer.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:02 pm
GST regime also brought a centralised system of waybills by the introduction of “E-way bills”. This system was launched on 1st April 2018 for Inter-state movement of goods and on 15th April 2018 for intra-state movement of goods in a staggered manner.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:03 pm
Goods and Services Tax (GST) is applied at two rates:
5% on the majority of goods and services supplied in Jersey for local use, including imports
0% for specific areas
5% on the majority of goods and services supplied in Jersey for local use, including imports
0% for specific areas
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:03 pm
To understand how GST works, you need to understand the difference between output tax and input tax.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:03 pm
'Input tax' is the GST that you pay to your suppliers on goods or services that you buy for your business. You are only allowed to claim input tax on goods and services that are directly related to making taxable supplies to your customers.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:04 pm
'Output tax' is the GST that your customers pay you for goods or services that you sell.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:04 pm
You only pay us the difference of these two amounts. If your input tax is greater than your output tax, you will be entitled to a credit or repayment.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:04 pm
Although GST accounting is done on a quarterly basis, we can assist the cash-flow of your business if you are regularly entitled to input tax refunds (eg if you are an exporter or property developer) by allowing your business to reclaim its input tax at monthly intervals.
- daksh007
- Posts : 11530
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:04 pm
As a GST-registered business, you will hold the tax you have collected from your customers for up to four months before you are required to pay it to us. This money could be placed in a business deposit account to earn interest for your business.
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:10 pm
GST is one indirect tax for the whole nation, which will make India one unified common market.
- deepika2029
- Posts : 10954
Join date : 2019-01-07
Re: What is GST and how it works ?
Fri Jan 11, 2019 12:10 pm
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
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