The full form of GST is Goods and Services Tax which is an indirect tax only used in India on the supply of goods and services. Tax in goods and services are divided into five stages of tax slabs as 0%, 5%, 12%, 18%, 28%. Products like petroleum products, alcoholic drinks, and electricity are not under GST, however, they are under tax which is separately taken by the individual state governments, as it was previously. However, there is a special rate of tax as 0.25% on rough precious and semi-precious stones and 3% on gold. GST is basically a consolidated tax that has been replaced with all other complicated indirect tax which was on goods and services. The tax will be based on the uniform tax and will be payable only at the final stage of consumption, this way of applying a tax on tax is known as cascading effect of taxes. For example – if a distributor sells a product to a retailer at a price of Rs. 100 and adding the indirect tax of 28% it becomes Rs. 128. Then the retailer will sell it to the customer after adding the indirect tax of 28% on Rs. 128 which becomes Rs. 164 due to the cascading effect of taxes the final price of the product increases.
GST is known as Goods and Services Tax. It is a secondary tax only used in India on the supply of goods and facilities. Tax in goods and amenities are separated into five stages of tax blocks as 0%, 5%, 12%, 18%, 28%.However, there is a singular rate of tax as 0.25% on rough precious and semi-precious stones and 3% on gold
let’s know about some precious advantages of GST.
*canceling or suspending of cascading:
*new well developed competitiveness:
*earn or archive to manufacturers and exporters:
*comfortable to administer:
*good grip and control on leakage:
*Higher revenue power:
*A single and capable or we can say that it is like transparent tax proportionate to the value of goods and services:
*Relief in the round figure tax burden:
Prime Minister Narendra Modi declared GST into operation on 1 July 2017. The Finance Minister of West Bengal, Asim Dasgupta designed the GST model. There is a total of 33 members in the GST Council of which 2 members are of the center and 28 state and 3 Union territories with legislation.
There is a set aggregate turnover for GST registration. The businesses whose aggregate turnover exceeds Rs 20 lakhs has to complusarily register under Goods and Services Tax. However, the businesses North Eastern and hilly states are declared as Special category. The limit is set at Rs 10 lakhs for these states.
| Term | Full Form |
| GST | Goods and Services Tax |
FAQ’s
which is an indirect tax only used in India on the supply of goods and services. Tax in goods and services are divided into five stages of tax slabs as 0%, 5%, 12%, 18%, 28%.
GST is short form of Goods and Services Tax.
Goods and Services Tax is full form of GST.
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