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Goods & Service Tax (GST)

1. Single Tax Structure for both Goods & Services which will Replace,

Indirect taxes at central & state level. However alcohol for Human Consumption & Petroleum not cover

2. GST will applicable throughout the India(including J & K)

3. GST is consumption based tax i.e. tax on value additions at each stage

4. Classified into Three Categories: -

i. Central Goods & Service Tax (CGST)
ii. State Goods & Service Tax (SGST)
iii. Integrated Goods & Service Tax (IGST) i.e. imposition of both CGST & SGST

For Ex:- Importation of Goods and Services fall under IGST

5. Registration Required in GST where,
Person makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds twenty lakh rupees or Ten Lakh (for supply of goods & services provided in Article 279A of Constitution)

6. Input Tax Credit will available for all three kinds of GSTs, provided:-

i. Vendor should have paid the GST collected & Filled the Return
ii. Return would be filled on monthly bases.
iii. One Annual Return would also filed
iv. In case tax payer does not make payment within 3 Months from invoice, Credit will be reversed

7. No tax rate has been finalized Yet, however it is expected to remain:-

i. 5% on Fast Moving Consumable Items
ii. 12% & 18% as Standard Rates
iii. 28%+Cess for luxury Items

8. Composition Scheme also available in GST for taxpayer having T.O. < 50 Lakhs by paying 2.5% of Turn Over in case of Manufactures or 1% for others.
Not available to Service Providers, Inter-State supply of Goods, etc.


 

Published by

CA Vishal Sharma
(Sole Practice)
Category GST   Report

18 Likes   34 Shares   46785 Views

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