Railway Accounts Department Examinations

Showing posts with label Goods & Service Tax. Show all posts
Showing posts with label Goods & Service Tax. Show all posts

Saturday, December 21, 2024

GST - Destination based consumption Tax जीएसटी - गंतव्य आधारित उपभोग कर

 

GST - Destination based consumption Tax

  • GST - Goods & Services Tax operates as a Destination-based tax. 

  • Destination-based tax means that the tax revenue is allocated to the location where the Goods & Services are ultimately consumed, rather than where they are produced. 

  • Example: If a product is manufactured in Gujarat and sold to a consumer in Telangana, the GST revenue from that sale is attributed to Telangana State, not Gujarat State. 

  • Imports: - GST is imposed on Imported goods on par with the domestically produced items to ensure a level playing field. 

  • Exports: Zero rated under GST, meaning they are not subject to tax.  This approach enhances the competitiveness of Indian goods and services in the Global market. 

GST - Destination based Tax: Implications: 

  1. Elimination of cascading taxes: By taxing at the point of consumption, GST reduces the cascading effect of taxes, where GST is levied on top of other taxes. 

  2. States with higher consumption levels benefit from increased tax revenues, as GST is collected  in the State where Goods & Services are consumed. 

  3. Shift in GST revenues from manufacturing heavy states to consumer heavy states

  4. Unified National market by ensuring that Goods & Services are taxed uniformly, regardless of their origin.

  5. Reduces trade barriers and fosters economic integration across States.

  6. Incentivizes States to boost consumption within their territories to enhance Revenues

In summary, India's adoption of a destination-based GST framework ensures that tax revenues are aligned with consumption patterns, fostering a more balanced and equitable distribution of resources across the country.

जीएसटी - गंतव्य आधारित उपभोग कर


  • जीएसटी - माल और सेवा कर एक गंतव्य-आधारित कर के रूप में कार्य करता है।

  • गंतव्य-आधारित कर का अर्थ है कि कर राजस्व उस स्थान पर आवंटित किया जाता है जहाँ माल और सेवाओं का अंततः उपभोग किया जाता है, न कि जहाँ उनका उत्पादन किया जाता है।

  • उदाहरण: यदि कोई उत्पाद गुजरात में निर्मित होता है और तेलंगाना में उपभोक्ता को बेचा जाता है, तो उस बिक्री से जीएसटी राजस्व तेलंगाना राज्य को दिया जाता है, गुजरात राज्य को नहीं।

  • आयात: - समान अवसर सुनिश्चित करने के लिए आयातित वस्तुओं पर घरेलू रूप से उत्पादित वस्तुओं के बराबर जीएसटी लगाया जाता है।

  • निर्यात: जीएसटी के तहत शून्य दर, जिसका अर्थ है कि वे कर के अधीन नहीं हैं। यह दृष्टिकोण वैश्विक बाजार में भारतीय वस्तुओं और सेवाओं की प्रतिस्पर्धात्मकता को बढ़ाता है।


जीएसटी - गंतव्य आधारित कर: निहितार्थ:


  • कैस्केडिंग करों का उन्मूलन: उपभोग के बिंदु पर कर लगाकर, जीएसटी करों के कैस्केडिंग प्रभाव को कम करता है, जहां जीएसटी अन्य करों के ऊपर लगाया जाता है।

  • उच्च उपभोग स्तर वाले राज्यों को कर राजस्व में वृद्धि से लाभ होता है, क्योंकि जीएसटी उस राज्य में एकत्र किया जाता है जहाँ वस्तुओं और सेवाओं का उपभोग किया जाता है।

  • जीएसटी राजस्व में विनिर्माण प्रधान राज्यों से उपभोक्ता प्रधान राज्यों में बदलाव

  • यह सुनिश्चित करके एकीकृत राष्ट्रीय बाजार कि वस्तुओं और सेवाओं पर उनके मूल की परवाह किए बिना समान रूप से कर लगाया जाता है।

  • व्यापार बाधाओं को कम करता है और राज्यों में आर्थिक एकीकरण को बढ़ावा देता है।

  • राजस्व बढ़ाने के लिए राज्यों को अपने क्षेत्रों में खपत बढ़ाने के लिए प्रोत्साहित करता है


संक्षेप में, भारत द्वारा गंतव्य-आधारित जीएसटी ढांचे को अपनाने से यह सुनिश्चित होता है कि कर राजस्व उपभोग पैटर्न के अनुरूप हो, जिससे देश भर में संसाधनों का अधिक संतुलित और न्यायसंगत वितरण हो।



–end–






Friday, December 20, 2024

GST Council जीएसटी परिषद

GST Council 

  • Stands for Goods & Services Tax Council 
  • A constitutional body in India 
  • Established in 2017 under Article 279A of the Constitution of India - 101st Constitutional Amendment Act, 2016
  • Responsible for making key decisions relating to GST 
  • GST launched on 1st July 2017

Composition:  

  • Chairman: Union Finance Minister (currently Smt Nirmala Sitharaman) 
  • Members: Union Minister of State for Revenue/Finance & Ministers in charge of Finance or taxation from each State & UT. 
  • Voting weightage: ⅓ - Central Govt and 2/3rds - State Governments. 
  • A decision requires at least 75% of votes in favour.  

Functions:  

  • Recommend tax rates, exemptions, and thresholds for GST.
  • Decide on special tax provisions for specific states.
  • Oversee the implementation and administration of GST laws.

The GST Council plays a pivotal role in shaping India's indirect tax landscape and maintaining a balance between national and state-level interests.

Key Points for MCQ: 

  1. GST stands for Goods & Services Tax 
  2. GST launched on 1st July 2017
  3. GST is managed by GST Council 
  4. GST Chairman - Finance Minister of India  

                                          -end-

जीएसटी परिषद

वस्तु एवं सेवा कर परिषद के लिए खड़ा है

भारत में एक संवैधानिक निकाय

भारत के संविधान के अनुच्छेद 279ए के तहत 2017 में स्थापित - 101वां संविधान संशोधन अधिनियम, 2016

जीएसटी से संबंधित प्रमुख निर्णय लेने के लिए जिम्मेदार

जीएसटी 1 जुलाई 2017 को लॉन्च किया गया

संरचना:

अध्यक्ष: केंद्रीय वित्त मंत्री (वर्तमान में श्रीमती निर्मला सीतारमण)

सदस्य: केंद्रीय राजस्व/वित्त राज्य मंत्री और प्रत्येक राज्य और केंद्र शासित प्रदेश से वित्त या कराधान के प्रभारी मंत्री।

मतदान भार: ⅓ - केंद्र सरकार और 2/3 - राज्य सरकारें।

किसी निर्णय के लिए पक्ष में कम से कम 75% मतों की आवश्यकता होती है।

कार्य:

जीएसटी के लिए कर दरों, छूटों और सीमाओं की सिफारिश करें।

विशिष्ट राज्यों के लिए विशेष कर प्रावधानों पर निर्णय लें।

जीएसटी कानूनों के कार्यान्वयन और प्रशासन की देखरेख करें।

जीएसटी परिषद भारत के अप्रत्यक्ष कर परिदृश्य को आकार देने और राष्ट्रीय और राज्य-स्तरीय हितों के बीच संतुलन बनाए रखने में महत्वपूर्ण भूमिका निभाती है।

एमसीक्यू के लिए मुख्य बिंदु:

जीएसटी का मतलब है वस्तु एवं सेवा कर

जीएसटी 1 जुलाई 2017 को लॉन्च किया गया

जीएसटी का प्रबंधन जीएसटी परिषद द्वारा किया जाता है

जीएसटी अध्यक्ष - भारत के वित्त मंत्री

                                                           -अंत-

Tuesday, October 8, 2024

RCM - Reverse Charge Mechanism (GST - Goods & Services Tax)

 RCM - Reverse Charge Mechanism (GST - Goods & Services Tax) 

  • Forward Mechanism: Typically, the supplier of goods or services pays the tax on supply. That is, the Purchaser makes payment (with GST) to the Supplier and the Supplier will deposit the GST with the Government. 


  • In RCM, The recipient (i.e., purchaser) of goods or services becomes liable to pay the tax, i.e., the chargeability gets reversed. Here, the Purchaser makes payment (without GST) to the Supplier and it is the responsibility of the Purchaser to deposit the GST with the Government on behalf of the Supplier.

In Indian Railways - GST


  • Forward mechanism: Services relating to passenger and freight service and any other service rendered to unregistered persons only 


  • IR registered under GST as Central Government though it is a business entity. IR has 36 registrations and each State and UT has been assigned with a Nodal Officer. 


  • Transportation of passengers & Goods are the two principal outward supplies of Services. Railways as a Supplier is responsible to deposit GST with the Government. 


Taxable: Non AC First Class and AC classes - GST Rate is 5%


Non Taxable:  1. Sleeper class (Non AC) 2. General Class 3. Relief materials 4. Newspapers 5. Railway materials 6. Agricultural products, Milk, Salt, Food grains & organic manure. 


RCM - Reverse Charge Mechanism: Railway as a Receiver is responsible to deposit GST with the Government. Examples are: Land licensing, Parking Contracts, renting out of immovable properties, way leave charges.


Tuesday, December 25, 2018

Composition Scheme in GST


Composition Scheme

ü  Opted by any Taxpayer whose turnover is less than Rs. 1.5 Crores  (Rs.75 Lakhs in case of North Eastern States).

ü  A simple and easy scheme under GST for taxpayers.

ü  Taxpayers who opted Composition scheme can get rid of tedious GST formalities

ü  Pay GST at a fixed rate of turnover.

ü  Service Providers are not eligible for Composition Scheme.  But Restaurants are eligible.

ü  GST rates under Composition scheme are as follows.

Type of Business
CGST
SGST
Total
Manufacturer and Trader
0.5 %
0.5%
1 %
Restaurants
2.5%
2.5%
5 %

Who cannot opt for Composition Scheme

ü  Supplier of services
ü  Manufacturer of ice cream, pan masala, or tobacco
ü  Businesses which supply goods through an e-commerce operator
ü  A dealer, who carrying out Inter-State transactions.

Advantages:

ü  Lesser compliance i.e., returns, maintaining books of record, Issuance of invoices.
ü  Limited tax liability.
ü  High liquidity as taxes are at a lower rate i.e., 5% or 1%.

Disadvantages:

ü  A limited territory of business. The dealer is barred from carrying out inter-state transactions
ü  No Input Tax Credit available to composition dealers
ü  The taxpayer will not be eligible to supply exempt goods or  goods through an e-commerce portal.
&&&&

ITC - Input Tax Credit


Input Tax Credit
·         What is Input Tax Credit ? 

Ans:  Input Tax Credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.

Example: A is a manufacturer.  Tax payable on the manufactured product is Rs. 200 /-.  However he already paid tax Rs. 75/- at the time of purchase of Raw materials.  So he can pay balance tax Rs. 125/- (i.e., Rs. 200 - Rs.75/-). duly availing the Input Tax Credit to the extent of Rs. 75/-.  Otherwise, he would be liable to pay the tax two times i.e., at the time of purchasing Raw Materials and Selling of manufactured product.

Event
Tax
Remarks
On manufacture of goods
Rs.200/-
Tax liability
On purchase of Raw materials
Rs. 75 /-
Already paid.
Balance Tax to be paid
Rs. 125/-
To be paid (duly availing Rs.75/- as ITC)

·         ITC is one of the fundamental features of GST

·         Seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country.

·         A person registered under composition scheme in GST cannot claim ITC.


ü  ITC can be claimed only for business purposes. ITC will not be available for goods or services exclusively used for: a. Personal use b. Exempt supplies c. Supplies for which ITC is specifically not available
ü   
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Tuesday, December 18, 2018

GST - Goods & Service Tax


GST - Goods & Service Tax
·         W.e.f  01.07.2017

·         Biggest reform in the Indirect tax regime.

·         One Nation  - One Tax  - One Market

·         Formulae is IGST(5%) = CGST (2.5%) + SGST/UTGST (2.5%)

·         Single Tax - Right from the Manufacturer to consumer.

·         Transaction based tax.

·         Five tax slabs  - 0%, 5%, 12%, 18% and 28%

·         GST - governed by GST council which consists of Finance Ministers of Union Government and All states.

·         Changed  from Origin based tax to Destination based Tax.

CGST
Levied by the Central Govt

SGST
Levied by the State Govt

UTGST
Levied by the UT Govt

IGST
Levied by the Central Govt on interstate supplies and on Imports of Goods


·         The following Central and State taxes are subsumed/included/merged into GST:
a)      Central Excise Duty (including additional duties of Excise)
b)      Service tax
c)      CVD (Levied on imports in lieu of Excise Duty)
d)      SACD (Levied on imports in lieu of VAT)
e)      Central Sales Tax(CST)
f)       Surcharges and Cesses.
g)      Octroi/Entry tax
h)      Purchase tax
i)        VAT
j)        Entertainment tax
k)      Luxury tax
l)        Tax on lottery, betting and gambling


·         The following taxes are not subsumed/ not included into GST
1.      Income Tax
2.      Customs duty
3.      Export duty
4.      Property tax
5.      Stamp duty
6.      Seniorage charges
GST is not applicable  on Petroleum products, Electricity and Alcohol.

·         The list of exempted Goods and Services are kept to a minimum and harmonised for Centre and States as far as possible.
·         The credit permitted to be utilised in the following manner:
a)      ITC of CGST allowed for payment of CGST & IGST in that Order.
b)      ITC of SGST allowed for payment of SGST & IGST in that Order.
c)      ITC of IGST allowed for payment of IGST, CGST & SGST.
GSTIN
ü  Full form : Goods & Service Tax Identification Number

ü  Assigned to every GST dealer.

ü  15 digit GSTIN based on State wise PAN (Permanent Account Number)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
State Code
PAN number of the Tax payer
No of registration within the state
Z
Check Code

Advantages:
·         Create unified common national market for India.
·         Giving a boost to Foreign Investment and “Make in India Campaign”
·         Boost export and Manufacturing activity and leading to substantive economic growth.
·         Help in poverty eradication by generating more employment.
·         Uniform SGST and IGST rates reduce the incentive for tax evasion.
·         Simple tax based system online
·         Uniform prices followed throughout the country.
·         Transparency prevails in taxation system.
·         Higher threshold achieved for registration.
·         Composition scheme for small business
·         The number of compliance is lesser.
·         Defined treatment for E-commerce operations
·         Improved efficiency of logistics
·         Unorganised sector is regulated under GST
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