All About GST Goods and Services Tax

All About GST – Goods and Services Tax
legalwiser.in/all-about-gst-goods-and-services-tax
June 15, 2021
The goods and services tax (GST) is a value-added tax imposed on most goods and
services sold for regular domestic purposes. GST is a tax that is levied on the supply of
goods and services, right from the manufacturer to the consumption holder. GST is
mainly purpose for single-rate tax which is used globally.
Tax is applied to the supply chain of goods and services. GST is a submerged of many
taxes like VAT, Excise Duty, Service tax, and Octroi.
In India, GST Act was passed in Parliament on 29th March 2017 and GST was
implemented on 1st July 2017.
The GST Council has approved rate structure – 5%, 12%, 18%, and 28% – with mostly
goods like to fall in the category of 12% and 18% rate. In addition, a cess will be imposed
on luxury and sin goods.
Category under the Goods and Services Tax:
➢ Central goods and services tax (CGST)
➢ State goods and services tax (SGST)
➢ Union territory goods and services tax (UTGST)
➢ Integrated goods and services tax (IGST)
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CENTRAL GOODS AND SERVICES TAX
Central goods and services tax is imposed on the supply chain of goods and services
undertaken within Intra State.
The CGST is charged by the Central Government which is sum up of a few indirect taxes
like
Cesses
Custom Duty
Service Tax
Central Excise Tax
Both the Central and the State governments will agree on combining their taxation with
an appropriate proportion for revenue sharing between the government.
STATE GOODS AND SERVICES Tax
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State Goods and Services Tax are charged by the State Government which is imposed on
goods and services also at the Intrastate level. SGST is a sum-up of many tasks like VAT,
Entertainment tax, Sales tax, etc. Both CGST And SGST agree to combined their
appropriate and equal portion of the percentage which is levied by the government is 18%.
Example for CGST and SGST
Let’s suppose Krishna is a dealer in Uttar Pradesh who sold goods to Raman
in UP worth Rs. 10,000. The GST rate is 18% comprising of CGST and SGST
equally divided rate of 9%. In such a case, the dealer collects Rs. 1800 of
which Rs. 900 will go to the Central Government and Rs. 900 will go to the
Uttar Pradesh Government.
Integrated Goods and Services Tax
Under GST, IGST is a tax imposed on inter-State supplies of goods and services and will
be governed by the IGST Act. IGST will be applicable on any supply of goods and services
which is done outside the country.
Let us suppose the sale of goods and services is done for RS 1 lakh. On this
sale, GST is applicable @18% directly. This means the dealer to pay Rs 18000
as tax to the government.
Union territory goods and services tax (UTGST)
UTGST is levied by the Intra State supplies of goods and services. UTGST is a counter of
SGST. UTGST is applicable only on the supply of 7 union territories.
WHY NEW GST REGISTRATION IS MANDATORY?
New Registration of GST is a mandatory requirement for all businesses. The business has
to register under the GST Act Rules, to generate their GST number for smoothly running
their business.
There are many small- and large-scale business who should register for GST like e-
commerce aggregator, Supplier, and Distributors, who supplies online information of
goods and services, etc. Businesses that have a turnover above 40 lakhs have a limitation
for GST for sale of goods in normal category state and 10 lakh GST limit for special
category states like hill states and the North Eastern States.
How to register GST online in a hassle-free manner?
In this Digital Era, LEGALWISER offering you to get a new GST Registration in Agra.
We are waiting to give our excellent services for your business to register and apply for a
GST online Number.
Below are the GST Registration benefits in Agra and PAN-India which you
will be getting from LEGALWISER mention below: –
➔ Apply for online GST Number
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➔ New GST Registration
➔ Special Discounts for GST Registration in Agra
These all services are provided by us as per your requirement. We have professionals who
can help you with GST Registration in Agra and PAN- India.
Contact us to know more we are happy to help you in your process of online GST
Registration.
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