Google trend - GST

GST - 10 things to know with detail

• What is GST: GST, or Goods and Services Tax, is an indirect tax levied on the supply of goods and services in India. It is a comprehensive tax that replaced multiple indirect taxes such as excise duty, service tax, VAT, etc.
• Dual GST Structure: GST in India is implemented as a dual GST system, with both the central government and state governments levying and collecting tax on the supply of goods and services. The Central GST (CGST) and State GST (SGST) are levied on intra-state transactions, while Integrated GST (IGST) is levied on inter-state transactions.
• GST Rates: GST in India is levied at multiple rates ranging from 0% to 28%. The rates are divided into four slabs - 5%, 12%, 18%, and 28%. Additionally, certain goods and services are exempt from GST or taxed at a special rate.
• Input Tax Credit: One of the key features of GST is the input tax credit mechanism, which allows businesses to claim credit for the taxes paid on inputs used in the production of goods or services. This helps in reducing the cascading effect of taxes and promotes efficiency in the tax system.
• Composition Scheme: Small businesses with an annual turnover below a certain threshold can opt for the composition scheme under GST. Under this scheme, they can pay a fixed percentage of their turnover as tax and are relieved from maintaining detailed records and filing regular returns.
• GST Registration: Businesses with a turnover above the prescribed threshold are required to register under GST. Registration can be done online through the GST portal by providing necessary documents and details. Failure to register can attract penalties.
• GST Returns: Registered taxpayers are required to file regular GST returns, including monthly, quarterly, and annual returns, depending on the turnover of the business. Returns can be filed online through the GST portal.
• Reverse Charge Mechanism: Under the reverse charge mechanism, the recipient of goods or services is liable to pay GST instead of the supplier. This mechanism is applicable in specific cases such as when dealing with unregistered suppliers.
• E-Way Bill: Under GST, the e-way bill system has been implemented for the movement of goods worth more than a specified value. It is an electronic document generated online that contains details of the goods being transported.
• GST Council: The GST Council is a constitutional body responsible for making recommendations on issues related to GST, including tax rates, exemptions, and amendments to the law. It consists of the finance ministers of the central and state governments and is chaired by the Union Finance Minister.