What is GST - Details of GST Explained in Simple Terms


GST Benefits, Rates Explained

Goods and Services Tax is an indirect tax implemented on July 1st, 2017 throughout India.

This replaced all the existing taxes that governed Goods and services across India. These were collectively called as cascading taxes levied by the State and Central Governments.

This Act is formulated and governed by the GST Council whose Chairman is the Finance Minister of India.

What taxes did GST replace:

GST replaced several existing taxes including: services tax, customs duty, surcharges, octroi, central excise duty, inter-state transportation of goods.

There are 4 different GST rates: 0%, 5%, 12%, and 18%.

There is also a special rate of 0.25% on rough precious and semi-precious stones. The GST rate on Gold is 3%. In addition a cess of 15% or other rates on top of 28% GST applies on some items that aren't used by everyone in the society like aerated drinks, luxury cars, and tobacco products.



What are the GST Rates on different products? 

Soaps 18%
Washing Detergents 28%
Movie tickets: 18% for tickets that are less than Rs. 100.
Movie tickets: 28% for tickets that are more than Rs. 100.
Booking on under-construction property is 12%.
Mobile phones 12%.
Vacuum cleaners 28%.
CCTV 18%.
and more.......

Do we have a complete GST Rates list for download for handy reference?

If you want to see a complete list, with rates comparison of the previous rate and current rate, you can get the complete list in PDF from this government website here. This is the latest and greatest as per discussions in the 16th GST Council Meeting held on 11th June 2017.

http://www.cbec.gov.in/resources//htdocs-cbec/gst/gst_rates_approved%20_by_gst_council%20_11.06.2017.pdf

What types of transactions are covered?

GST applies to all transactions such as:
  • Sale
  • Purchase
  • Transfer
  • Lease
  • Barter
  • Import

What are the different types of GST?

CGST - Central GST
SGST - State GST
IGST - Integrated GST

What is the difference between CGST, SGST, and IGST?

India embraced a dual GST model, which means that taxation will be levied and administered by both the Central and State Governments.

CGST and SGST - Transactions made within the State will be levied with CGST (by Central Govt.) and SGST (by State Govt.)

IGST - will be levied on inter-state transactions and imported goods and services by the Central Govt.

In inter-state transportation and sale of goods and services between parties from two different States, who pays the GST Tax?

GST is a consumption based tax. Hence, it is paid to the state where the goods are consumed. Not the state in which they were produced.

Are there any product that doesn't have GST?

Of course. There are close to 200+ products and services that have no GST. For example, most of the fruits and vegetables don't have GST.

GST Rates
Source: ClearTax



 Sources:
1. https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
2. https://cleartax.in/s/gst-law-goods-and-services-tax
3. https://cleartax.in/s/gst-rates
4. http://www.hindustantimes.com/interactives/gst-rate-complete-list/


Comments

Post a Comment

Popular posts from this blog

17 Important Abbreviations Related to GST

Image
GST implementation mandated registration for certain persons. There are some abbreviations one has to be aware of at the time of registration. The following is a curated list that one can refer to anytime. Not only for the registrants, but also anyone who is interested in knowing the details of GST. Related: What is GST - Details of GST explained in Simple Terms Following are the 17 Important terms and abbreviations necessary for us to be aware of ARN - Application Reference Number CBEC - Central Board of Excise and Customs FLLP - Foreign Limited Liability Partnership GST - Goods and Services Tax LLP - Limited Liability Partnership OTP - One Time Password VAT - Value Added Tax CGST - Central Goods and Services Tax IGST - Integrated Goods and Services Tax SGST - State Goods and Services Tax UIN - Unique Identity Number UTGST - Union Territory Goods and Services Tax Act SEZ - Special Economic Zones ISD - Input Service Distributor CTP - Casual Taxable Person AOP - Association of Persons...
Read more

GST Certification Course From Lucknow University

Image
With the GST talks going around the country, colleges and universities are also coming up with various courses. One such is the Lucknow University which is coming up with a 6-month certification course on GST. As per this source, application forms will be available from August 2017 first week. Since the tax regime has changed in the country, the officials from the university had decided that students too should equip themselves with the latest and the greatest. The decision by the concerned officials to introduce GST as a subject in Commerce and management studies were taken on July 6th. Source: http://indianexpress.com/article/education/lucknow-university-gst-course-six-month-certificate-course-on-goods-service-tax-introduced-in-uttar-pradesh-4742024/
Read more

Here's How to Find GST Rate for Any Goods or Service

Image
You probably already know GST is effective since July 1st, 2017. But what if you are a seller or an informed buyer who is keen in knowing the GST rate for every kind of product out there? [Infographic] GST Rates Cheatsheet Thanks to this online GST rate checker. You can simply type a product type (not the brand name) or the services type and can immediately get the GST Rate displayed on the screen. Here's how you can get the GST rate for any goods or service Goto this site:  https://www.indiafilings.com/find-gst-rate Select the drop-down to choose 'Goods' or 'Services'. Begin typing to find goods or services. For example, I typed Stationary . You can see that the search bar displays suggestions automatically as we type. Hit the ' Search ' button. How to find the HSN Code along with GST Rate for a Goods or Service You could also browse by HSN code ( Harmonized System of Nomenclature ) categories given at the bottom of the site. It's a search by selection ...
Read more