What is Goods & Services Tax

 

Goods & Services Tax implemented in India on 1st July 2017 is a multi stage Indirect Tax used on the supply of Goods & Services. Implementation of GST has removed existence of all other Indirect Tax like VAT,CST, Excise Duty , Octroi , Entertainment tax etc. GST has divided into 5 different Tax slab which are 0% , 5% , 12% , 18% ,28%.

Types of GST 

CGST-  stands for Central Goods & Services Tax is charged on supply of Goods & Services within the state.

SGST-stands for State Goods & Services Tax is charged on supply of Goods & Services within the state.

IGST-stands for Integrated Goods & Services Tax is charged on supply of Goods & Services in inter-state.

Registration of GST 

           All company that are eligible under GST must register itself in the GST portal. It is mandatory for all Service providers, buyers, and sellers to register. A business that makes a total income of Rs.20 lakhs and more in a financial year must be required to do GST registration and obtain GSTIN ( Goods and Services Tax Identification number.

Certificate of GST

           A GST Certificate is an official document that is issued by the concerned authorities for a business that has been enrolled under the GST. GST registration certificates is issued in form GST REG-06.

GST Returns

             Under the Goods and Services Tax, registered dealers must file their GST returns with details regarding their purchases, sales, input tax credit, and output GST. Lets discuss on types of GST return.

GSTR 1- It must file by register suppliers showing  details of outward supplies of taxable goods and services as effected.

GSTR 2- It shows details of inward supplies of taxable goods and services claiming input tax credit.

GSTR 3-  Every registered person must file this  return on the basis of finalization of details of outward supplies and inward supplies plus the payment of amount of tax.

GSTR 4 - Composition supplier should file quarterly return

GSTR 5 - Return for non-resident taxable person

GSTR 6- Return for input service distributor

GSTR 7- Return for authorities carrying out tax deduction at source

GSTR 8 -  It is for E-commerce operator or tax collector to file details of supplies effected and the amount of tax collected 

GSTR 9 - It is an Annual Return

GSTR 10- It is Final Return , taxpayer whose registration has cancelled or surrender has to file this,

GSTR 11- Person having UIN claiming refund should file details of inward supplies

Advantages of GST

1.  Higher Threshold for Registration
2.  Less number of Compliances
3.  It Eliminates the cascading effect of TAX

Disadvantages of GST

1. Increase in Operational Cost
2. Less knowledge leads to attract Penalties
3. Small Enterprise will have high tax burden

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