GST is indirectly applicable to the whole of India which replaces multiple cascading taxes levied by the state and central govt. It was introduced as the constitution (one hundred and first amendments) at 2017 following the passage of Constitution 122nd amendment bill. IT is governed by a GST council and its chairman is the finance minister of India under CST (goods and service taxed at the following rates 0%, 5%, 12%, 18% and 28%. There is a special rate 0.25% on rough. PRECIOUS and Semi –PRECIOUS STONES and 3% on gold…
These taxes will be
replaced by the GST.
-Central excise duty.
-Value added tax (vat)
-central sales tax
GST is levied on all transaction like sale, transfer, purchase, barter, lease or import of goods or service. India follows a dual GST model meaning that taxation is administrated by both for the interstate transaction and imported goods and service, an integrated GST (IGST) is levied by the central government.
GST is a consumption based tax so service taxes are paid to the state where goods or service are consumed not the state in which they were produced. IGST complicates tax collection for state government by disabling them to collect the tax owed to them directly from central government.
Under the previous system, a state would have to only railway single government in order to collect tax revenue.GST is a one nation one tax system. It creates transparency to the whole tax structure.
Before GST come into existence various type of tax change on the same product because each product passes through several stages and each stage changed separate tax on that stage. It is a process continues till the final consumption to the customer so that result ultimate burden of all the taxes changed by the various person manufactures as distributes whole seller and retailers shifted to the consumer. Because it is indirect tax hence the burden of taxes shifted to another person but the consumer does not pass further goods that mean good consumed by itself so that all burden bear by a consumer. But after an existence of GST, all those taxes removed and one tax shall be charged on a transaction with prescribed rates like 0%, 5%, 12%, 18% and 28% and special rate 0.25% on precious row materials and semi-stone. Instead of various taxes changed on the product.
The advantage of GST:-
It is a replacement of all indirect tax also provided ITC (input tax credit) of an earlier stage can be allowed on a further stage of all transaction it is removed cascading effects.Even input and capital input service and output service and ITC also allowed to the dealer.
GST 5% Tax service
- Transport service
- Flights( economy class)
- Taxi service
- Small restaurants(below 50 lakhs turnover)
- Bio gas plant
- Wind Mills
GST 12% Tax Goods
- Ayurvedic medicines coloring books
- Tooth power picture books
- Agarbati umbrella bicycles
- Butter sewing machine contact lenses
- Cheese feeding bottles
- Fruit juices pencil
- Dry fruits(packed)
- Animals fat utensil
- Frozen meat sports goods
GST 12% Tax service
- Flights ticket (business class)
- Non AC hotels
- Work contracts.
GST 18% Tax Goods
Flavored sugar steel products
Pasta printed circuits
Pastries and cakes monitors
Preserved veggies Soups
Jams and sauces
Instant food mixes
GST 18% Tax (service)
AC hotels with liquor license
GST 28% TAX
Proposed registration process
- Registration of taxable person under GST.
- To give every person unique identification
- Link all GST related transaction of every one.
- allow proper accounting of taxes paid on input goods and service.
- allow passing of tax credit on the supply of goods and service.
- Ease in compliance verification.
Who are Enable to registered
- Person registration to pay existing taxes. That will be subsumed under GST.
- A person with all India gross turnover more than a threshold.
- The person making interstate suppliers.
- Casual and
- Voluntary registration below the threshold.
- Unique id for the specific class of person.
Salient features of registration process
- Pan based registration pan will be mandatory.
- Unified application to both tax authorities.
- To be filed within 30 days.
- state wise registration for entities having the presence in more than one state need not apply
Separately for Each state.
- Demand approved within three days.
- Within a pan separates registration for separate business verification within a state possible.
Structure of (GST TIN)
15 digit alphanumeric structure
state wisebased on pan
13th digit for business confirmation of entities with the same pan in the same state.
14th number left empty for future use
15th number check-sum
Amendments to registration details on site amendment essential for efficient tax administration all relevant detailed to be amended by the tax payer on the self-service basis some of them like phone number and email address through online confirmation some significant information like name, principal place of the business to be amended after approval from tax authorities
Migration of existing tax payers to the GSTN (Goods and service tax network) data base.
Tax payer with valid PAN
- Online application form through a common portal.
- Document to be filed for
- Constitution Of business
Principal place of business
Application, not sums submitted through digital signature to be supported by sending a signed copy of the summary extract of the form.
- Processing of application and grant of registration even before signed copy received.
- Cancellation to be initiated of no signed copy received.
Email and Sms based alerts to the applicants.
- No application fees (advance tax in case of casual suppliers)
- Application can be filed through facilitation centers (FCS) or through tax return preparers (TRPs)
- Online verification of certain information like pan, CIN bank account (i
f possible) and Aadhaar.
- Online communication of application to jurisdictional authority by the backend module of tax authorities.
- 3 common working days for tax authorities to take action.
- if not responded within 3 days it shall be deemed to approved
- Single opportunity to tax authorities to arise query. if any -7days for responses and 7days for action.
- Mostly post registration visit based on risk profile.
- Online grants of registration.
- Login id and temporary password communicated to the tax payers.
- Downloadable registration certificate to be provided by GSTN.
- Refund to registration by one tax authority deemed as the refusal by both.
- communication of reason for refusal of registration
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