GST - Goods & Service Tax
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W.e.f
01.07.2017
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Biggest reform in the Indirect tax regime.
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One Nation
- One Tax - One Market
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Formulae is IGST(5%) = CGST (2.5%) + SGST/UTGST (2.5%)
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Single Tax - Right from the Manufacturer to consumer.
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Transaction based tax.
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Five tax slabs
- 0%, 5%, 12%, 18% and 28%
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GST - governed by GST council which consists of Finance
Ministers of Union Government and All states.
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Changed from Origin
based tax to Destination based Tax.
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CGST
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Levied by the Central Govt
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SGST
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Levied by the State Govt
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UTGST
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Levied by the UT Govt
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IGST
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Levied by the Central Govt on interstate supplies and on Imports of
Goods
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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
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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.
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The list of exempted Goods and Services are kept to a minimum
and harmonised for Centre and States as far as possible.
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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)
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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13
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14
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15
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State Code
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PAN number of the Tax payer
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No of registration within the state
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Z
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Check Code
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Advantages:
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Create unified common national market for India.
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Giving a boost to Foreign Investment and “Make in India
Campaign”
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Boost export and Manufacturing activity and leading to
substantive economic growth.
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Help in poverty eradication by generating more employment.
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Uniform SGST and IGST rates reduce the incentive for tax
evasion.
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Simple tax based system online
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Uniform prices followed throughout the country.
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Transparency prevails in taxation system.
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Higher threshold achieved for registration.
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Composition scheme for small business
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The number of compliance is lesser.
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Defined treatment for E-commerce operations
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Improved efficiency of logistics
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Unorganised sector is regulated under GST
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