Cgst- Empowering Business

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The Goods and Services Tax (GST) was executed in India by the central government on July 1, 2017, with the aim of "One Nation One Tax," the GST combined several different taxes charged by governments under the three broad categories mentioned below.
CGST
SGST
IGST

Meaning and full form of CGST

CGST full form is Central Goods and Services Tax. It constitutes all the central government's taxes, including central excise duty and surcharges.

CGST and SGST are equal in amount. Suppose the GST rate is 18%; CGST and SGST will charge 9%.

Features of CGST

The Central Goods and Services Tax (CGST) has various salient features. Read these pointers to learn about the features:

CGST is charged on all intra-state goods and services.
It extends the input tax credit base by ensuring their availability as taxes paid on the supply of goods and services.
CGST allows the self-assessment of taxpayers.
CGST conducts audits so taxpayers can keep up with the Act's provisions.
...
... The CGST has provisions for charging GST penalties or fines in case of infringement.
For consumers, the Central Goods and Services Tax (CGST) reduces the tax burden on various goods and services.

Benefits of CGST Act 2017

There are various benefits of the Central Goods and Services Tax Act 2017. Some of the benefits of CGST are:
Elimination of layers of Taxes- Before the implementation of GST, both the Centre and states charged various rates of taxes on the same goods and services. As a result, multiple taxes were charged on goods and services, resulting in a high taxation burden on taxpayers.
Cost Reduction- The CGST has cut down the prices of goods and services and is serving the common people to save more money.
Seamless Business- CGST has a uniform concept across all states, which makes it simple to conduct interstate business without worrying about different taxes.
Ease in Tax Filing and Documentation- CGST has made tax filing and maintaining documentation significantly more accessible for business people and made compliance processes hassle-free.
Reduces Cascading Effects of Tax- Since CGST ensures tax advantages at every stage, from manufacturing to consumption, it has stopped the cascading effect of taxation in India.

CGST Rules

The CGST Rules for business in India are:

A tax invoice for all goods and services (taxable) under registered GST is issued.
Ensure all these invoices have a unique serial number and are in sequence.
Do not buy goods from unauthorized sellers.

Section 16 of CGST Act,2017

Section 16 of CGST ACT 2017 talks about the Input Tax Credit mechanism, which allows the Taxpayers to offset the GST Input Tax Credit with the GST Output Tax Liability.

Section 17(5) of CGST Act,2017

Section 17 (5) in CGST Act 2017 lists the goods and services for which input tax credit is unavailable to the registered person under GST.

Conclusion

This article covers all the essential details of the CGST Act 2017. We hope you find this article helpful. If you want to ease your business by tracking all your financial records, opt for the No. 1 billing software, Eazybills.

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