Why is GST Registration essential in India?
by Ananya Nair Accounting and Legal ServicesGST ensures
that taxpayer services such as registration, returns, and even compliance are
clear-cut and straightforward. Hence, it allows total transparency to all.
Every business owners have to file their monthly returns. All the businesses (small
or large) supplying goods and services whose turnover exceeds Rs 40 lakh in a
financial year are required to register as a normal taxable person.
Goods and
Services Tax (GST) came into effect on 1st July 2017, t he full form of GST is Goods and Services Tax. The Government from
any country required money for its development and other works and taxes are a
major source of income for a Government.
Types of GST (Goods and Services Tax)
The purpose
of GST is to reduce the cascading effect of tax on the cost of goods and
services and create a common, cooperative and undivided Indian market to make
economy stronger and powerful. That's why GST system is combined in Central
excise duty, additional excise duty, service tax, State VAT entertainment tax
etc.
- Integrated
Goods and Services Tax (IGST)
- State
Goods and Services Tax (SGST)
- Central
Goods and Services Tax (CGST)
- Union
Territory Goods and Services Tax (UTGST)
Integrated Goods and Services Tax
(IGST): Under GST,
Integrated Goods and Services Tax (IGST) is a tax levied on all Inter-State
supplies of goods and/or services and will be governed by the IGST Act. Also as
the name suggest, IGST will be applicable on any supply of goods and/or
services in both cases of import into India and export from India.
State Goods and Services Tax (SGST): SGST are part of GST, Goods and
Service Tax. CGST expands as Central Goods and Service Tax and SGST is the
short form of State Goods and Service Tax.
Central Goods and Services Tax (CGST):
CGST is a tax
charged on intrastate supply of goods and services by the central government
and is governed by the CGST Act, 2017. Taxes collected under Central Goods and
Service tax will be the revenue for central Government.
Union Territory Goods and Services
Tax (UTGST): The
full form of UTGST is Union Territory Goods and Services Tax. UTGST is
applicable on the goods and services supply that takes place in territories of
India including Chandigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli,
Andaman and Nicobar Islands, Delhi, and Puducherry.
Structure of GST
In India GST
is organized in such a way that all the necessary services and some food items
are placed in the lowest bracket, and the other luxury goods and services and
de-merit goods are placed in the highest bracket. The GST council has set the
four-tier structure at 5 per cent, 12 per cent, 18 per cent and 28 per cent.
Conclusion:
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Created on Jun 30th 2021 05:16. Viewed 173 times.