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Gst And Our Indian Economy

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By Author: earnlogic jagadeesh
Total Articles: 2
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Goods and Service Tax- GST is intended to be an extensive collateral tax burden on production, marketing and utilization of goods and service in National level which came into effect from July 1st 2017. The motto of GST is to make India as One Nation- One Tax- One Market. Based upon the essence of supply, the components of GST are (i) CGST (ii) SGST (iii) UGST) (iv) IGST. GST is debited on the expense or retail price of the commodity. Only a certified person can charge and collect GST on the goods and services made by him. CGST is levied by central government whereas SGST is levied by state government. IGST stands for integrated GST that takes place on an inter-state supply of goods and services. If the business network is in union territory, then UGST is placed in place of SGST. GST registration is compulsory when the annual turnover exceeds beyond 20 Lakh and 10 Lakh for some special categories. All e- commerce operators and aggregators who involve in trade under their own brand name. A tax is a financial charge which is imposed upon a tax payer by the state which is not a free willed payment or aid but an imposed contribution in the name of toll, duty, excise, custom and subsidy, A system of boosting revenue is called taxation.
The two forms of GST are Intra state and Inter -state. Intra- State is sale that takes place within same state (i.e)= CGST(9%) + SGST(9%) = 18%. Inter- State is sale that takes place outside the state (i.e)= IGST(5%). We can obtain GST by multiplying taxable amount and GST rate. It is calculated on the amount of transaction and not by MRP. Minimum 0% GST is applicable for necessary items like milk, wheat flour, and also for alcohol, petrol, diesel, motor spirit, natural gas, electricity, salary and wages. Maximum 28% GST is applied for cement, luxurious cars, and even tobacco, etc. The main advantage of GST is single indirect tax for whole India and goods can be transferred easily from one state to another state. RCM-Reverse Charge Mechanism is continued under GST. Purchase or service availed by a register person from un registered person shall be liable to pay tax under RCM. Also the ITC mechanism - Input Tax Credit or called MODVAT mechanism is still continued under GST. ITC is the backbone of GST in which all the purchases and expenses shall be granted as credit.
GST is an all inclusive, Multi stage and terminal -based tax that is collected on every value extension. The list of tax laws before GST are namely as follows, Central Excise Duty, VAT, purchase tax, luxury tax, Central Sales Tax, Additional duties and special additional duties of customs, Entertainment tax, Advertisement tax, Tax on lottery, betting and gambling. The changes that GST has brought in is improvement in collection of taxes that boosts the development of Indian Economy by abolishing the Indirect tax barriers between states and harmonizing the country through a homogenous tax rate. The advantage of GST registration is that, the business will be legally recognized as good suppliers of goods or services and will have appropriate accounting of taxes paid on inputs which can be utilized later. The GST registered business will have legal authorization to gather tax from purchasers or recipients.
This article is an overall discussion of GST registration and its factors which influence our Indian Economy.

More About the Author

Hai, this is earnlogic jagadeesh from bangalore. i started writing articles on legal registration services.

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