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All You Need To Know About Gst
What is GST?
Goods and Services Tax as well all know, is a value added tax at every stage of goods and services supply, mainly on the amount of value addition at every stage. The purpose of GST is to eliminate inefficiency in the Indian Tax system that results in cascading of taxes. GST consultants in Delhi, define GST as a tax on consumption. It has two components of central GST and state GST.
What is input tax credit?
In order to ensure that the tax is levied only on the amount of value added at every stage of supply chain, a credit of past taxes paid is granted.
Let us understand the same with the help of an example. A clothing manufacturer with get tax credit for the taxes paid on purchase of fabric when final indirect tax liability is being computed to be levied on consumer. A service provider, for instance a telecom company, will get a tax credit for taxes paid on goods and services he used in his company.
While the entire process may seem complicated, a top ca in West Delhi can handle the same with much ease.
Who has to pay GST?
Any business with an annual turnover of more than Rs. 20 Lakh is liable to pay GST. In case of North eastern and other special category states, the limit is INR 10 Lakh. GST is also applicable for interstate trading regardless of threshold. To understand more, you can hire a top ca in Janakpuri who can help you with GST calculations.
What are the existing taxes GST?
Taxes on production of goods and services like central excise duty and additional excise duty along with import duties like countervailing duty, service tax, state tax, central cess and central sales tax on interstate trading, luxury tax, advertisement tax, entertainment tax, taxes on betting, taxes on gambling and surcharge on supply of goods is all incorporated into GST.
What are the benefits of GST?
Introduction of GST has brought transparency on taxes that were earlier levied on goods and service supply. Presently, when you purchase a commodity, you are required to pay only the state taxes mentioned on the label and no other various tax components.
GST has no doubt improved the ease of doing business, as it has efficiently dismantled entry barriers along the state borders.
GST brings transparency on the taxes levied on the supply of goods and services. At present, when an item is purchased, the common man sees only the state taxes on the product label, not the various embedded tax components.
GST has also significantly improved tax compliance, increased revenue receipts and contributed to the growth of GDP.
Tax burden on many items is also eliminated by introduction of GST.
Which products are not part of GST?
Commodities like Crude oil, petrol, diesel, natural gas and jet fuel are not a part of GST yet.
What is IGST?
IGST is the tax levied on interstate supply of good and services and constitutes the central and state GST components.
How are imports treated?
Currently, imports are considered at interstate supply and hence GST is levied on them. They also attract IGST. Exports however do not have any taxes.
If you think GST calculations are complicated or you need a better understanding of the same, you can hire GST consultants in Delhi who will help you walk through the process.
Call to action:
If you are looking for someone to help you with GST calculations and other tax compliance, you can get in touch with www.manishanilgupta.com and get required services from experts at affordable rates.
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