Download GST
This document covered Most of the topics under gst and more Study notes Business Taxation and Tax Management in PDF only on Docsity!
GST
STUDY NOTES
What is Mean by GST :
- GST is known as the Goods and Services Tax.
- It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc.
- The Goods and Service Tax Act was passed in the Parliament on 29th^ March 2017 and came into effect on 1st^ July 2017.
- Goods and Services Tax (GST) is a successor to VAT used in India on the supply of Goods and services. GST is a digitalized form of VAT where you can also track the Goods & services.
- The statutory tax rate for most goods was about 26.5%; post-GST, most Goods are expected to be in the 18% tax range.
- Gateway of Tally > Display > Statutory Reports >GST > GST Rate set up. Choose the items which have the specified HSN Code. Press Set Rate, and choose the GST Classification. Create different classifications for items that come under different HSNs and Attach them to the required items. You can create a GST Classification in order to record the Tax rate and other details for a category of goods attracting a specific GST rate.
Slab Rate Of GST :
- Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%.
- Petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.
- There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on several items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%; post-GST, most goods are expected to be in the 18% tax range.
Objective of GST :
▪ The elimination of multiple tax systems. ▪ Increase in compliance with businesses. ▪ To reduce the prices. ▪ Boost the country’s complete revenue. ▪ For higher efficiency and productivity.
Types and components of GST :
1. SGST
2. CGST
3. IGST
4. UGST
SGST :
State government levies SGST on the intra-state transactions of goods and services. The revenue collected is earned by the state government wherein this transaction takes place. SGST subsumes earlier taxes like purchase tax, luxury tax, VAT, Octroi, etc. CGST : The Central government levies CGST on the intra-state transactions of goods and services. It is levied alongside SGST or UGST, and the collected revenues are shared equally between the center and the state.
- Miscellaneous: Vaccines, journals, newspapers, maps, books, non-judicial stamps, articles of paper pulp, etc.
GST Rates :
The GST Council determines the GST rate slabs. The GST Council reviews the rate slabs for goods and services on a regular basis. GST rates are typically high for luxury items and low for necessities. GST rates in India for various goods and services are divided into four slabs: 5% GST, 12% GST, 18% GST, and 28% GST. Since the inception of the Goods and Services Tax, the GST council has revised the GST rates for various products several times (GST). The most recent rate revision went into effect at the 41st^ GST Council Meeting on August 27, 2020. Previously, there had been numerous GST Council Meetings at which certain rate revisions were introduced.
Different Types of GST Tax :
➢ Inter State Transaction ➢ Intra State Transaction Inter State Transaction: It Is a transaction that takes place between two states. For instance, a supplier supplies iron ore from Jharkhand to a consumer in West Bengal. The GST, thus collected, is divided between the Central government and the West Bengal government (State of consumption). Intra State Transaction: When a transaction is carried out within a State, it is an intra-state transaction. For example, a business in Jharkhand supplies 1 tonne of iron-ore to a consumer within the State. The GST then diverts to the Centre government and the Jharkhand government.
GST report :
GST report is the report that shows a summary of the GST received and paid details broken down By various tax codes and is used to calculate GST payment or refund. The GST report is a type of report that prints your paid and received GST summary, which is Broken down into different tax codes. It is utilized to determine your GST refunds or payments. There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4, GSTR- 5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04. However, all returns do not apply to all taxpayers. Taxpayers file returns based on the type of Taxpayer/type of registration. Audit under GST is the process of examination of records, returns and other documents maintained By a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, Refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST
GSTN :
GSTN, short for Goods and Service Tax Network, is a non-profit non-government company. It provides shared IT infrastructure and service to both central and state governments including taxpayers and other stakeholders. The registration Front end services, Returns, and payments to all taxpayers will be provided by GSTN. In a nutshell, it will act as the interface between the government and the taxpayers.
