GST Overview
GST Overview
Goods and Services Tax (GST) is an Indirect tax.Under GST, goods and services are taxable at the rates, 0%, 5%, 12%, 18% and 28%. Precious stones (other than diamonds) and semi-precious stones will attract 3% rate, rough diamond will attract 0.25%. Exports and supply to Special Economic Zone are taxable at 0%.
GST is levied at each state, it is destination-based tax that will be levied on every value addition.
GST is a single tax having different rate of tax for different type of goods & services.On the taxable supply of goods and services, tax charged by the manufacturer from traders will be available as input tax credit to the trader and tax charged by the trader from retailer will also be available as input tax credit to the retailer while making tax payment to Govt, which makes GST essentially a tax only on value addition at each stage by the manufacturer /Traders/Retails. The final consumer will bear only the GST charged by the last retailer.
Under Export "tax" charged by manufacture from Exporters. The exporter can claim refund the amount of tax so charged by the manufactures.In case of export GST will not be charged from customers.
There are two component of the GST.
1. Central GST (CGST) which is levied by Centre.
2. State GST (SGST) which is levied by State.
Integrated GST (IGST) - which is levied by Central Government on inter-State supply of goods and services, export on goods or service which is refundable.
“Person†Required to get GST Registration.
1. A person who supplies taxable goods & services and turnover from such supplies exceeds 20 Lakh Rupees (10Lakh rupees in the states of Jammu & Kashmir, Arunachal Pradesh, Manipur)(A person who deals in only exempted goods/services which are exempt under GST, He is not required to get GST No.)
2. Every person who is already registered under VAT, Central, sale tax, Service tax, excise etc.
3. Persons providing taxable goods or services to other states.
4. Person providing online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
5. Transferee in case of transfer of business.
6. Casual taxable persons.
7. Non-resident taxable persons.
8. Persons who are required to pay tax under reverse charge.
9. Agents of suppliers on behalf of principle.perators or aggregators.
11. Person who supplies goods & services via e-commerce aggregator.
12. A person who is required to deduct or collect tax at source under GST Act.
Click here to know what documents are required to get GST No.