TALLY TRAINING IN . CHANDIGARH CBitss Technology
What is GST? Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. In simple words, Goods and Service Tax is an indirect tax levied on the supply of goods and services. GST Law has replaced many indirect tax laws that previously existed in India.
What are the components of GST?
here are 3 taxes applicable under GST: CGST, SGST & IGST. ●
CGST: Collected by the Central Government on an intra-state sale (Eg: Within Maharashtra)
●
SGST: Collected by the State Government on an intra-state sale (Eg: Within Mahaashtra)
●
IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)
What is State GST and Central GST?
For transactions within a State, there will be two components of GST - Central GST (CGST) and State GST (SGST) - levied on the value of goods and services. Both the Centre and the States will simultaneously levy GST across the value chain. In the case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST). The IGST would be roughly equal to CGST plus SGST.
How will GST help in getting rid of tax evasion?
A comprehensive IT system, GSTN, will allot universal GST numbers (similar to PAN) to all manufacturers, traders, stockists, wholesalers and retailers. This will simplify the administration of indirect taxes and plug leakages. The government also plans to incentivise tax compliance by traders. Whether the GST will be beneficial to the poor or not only time can tell. Prices of vegetables and fruits are likely to rise under the GST regime and services such as eating at restaurants will get more expensive. What will likely get cheaper are items such as clothes, as cascading taxes at various stages of manufacturing would no longer apply to them.
Which are the items that could become costlier and which are those that could become cheaper?
Broadly, services are expected to become costlier under the GST regime, as the expected GST rate would be higher than the existing service tax rate of 15%. Clearly, the GST is expected to bring down prices of indigenously manufactured goods on account of current effective indirect taxes (central excise @ 12.5%, State VAT @ 5%-15% etc.) being higher as compared to recommended lower GST rate @ 5% and standard GST rates @ 12% and 18%. Thus, price of certain category of goods may come down depending on the effective rate of indirect taxes being paid at present and the tax brackets under which goods are classified under the GST.
How will GST affect tax deductions of a salaried person?
The GST is an indirect tax collected from customers who buy manufactured goods or services. So whether you are earning a salary or not, as long as you buy something, you’ll be paying tax.
TALLY TRAINING IN . CHANDIGARH SCO: 23-24-25, Sector 34A, Chandigarh (UT), India. Mobile: +91 99 88 74 1983 Telephone: 017 25 03 1983 E-mail:counselor :- cbitss@gmail.com http://cbitss.co.in/tally-training-in-chandigarh.html