Essay on GST: GST or Goods and Services Tax, India is a tax based on the usage of goods or services across India. GST is an indirect tax replacing the previous indirect taxes imposed on the goods and services. Direct taxes such as income tax, corporate tax, etc., are not influenced by the GST.
What is GST short note?
The goods and services tax (GST) is a tax on goods and services sold domestically for consumption. The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller.
What is GST in an essay?
500+ Words Essay on GST. Goods and Services Tax (GST) refers to an indirect tax . ... This is in contrast to collection from the point of origin like previous taxes. Furthermore, this tax’s imposition is at every step in the production process. The refund is for all the parties in the various stages of production.
What is a GST introduction?
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits up to the retailer level . It is essentially a tax only on value addition at each stage, and a supplier at each stage is permitted to set-off, through a tax credit mechanism, the GST paid on the purchase of goods and services.
What is GST summary?
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.
What is GST its advantages and disadvantages?
GST is a transparent tax and also reduces the number of indirect taxes . GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. Benefit people as prices will come down which in turn will help companies as consumption will increase.
Who shall pay GST?
2) Who is liable to pay GST? In general the supplier of goods or service is liable to pay GST. However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism.
Who is the father of GST?
Vajpayee set up a committee headed by the Finance Minister of West Bengal, Asim Dasgupta to design a GST model. The Asim Dasgupta committee which was also tasked with putting in place the back-end technology and logistics (later came to be known as the GST Network, or GSTN, in 2015).
What is GST example?
| Central Indirect Taxes & Levies Central Excise Duty | State Indirect Taxes & Levies VAT / Sales Tax |
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What are the 3 types of GST?
- The Central Goods and Services Tax (CGST)
- The State Goods and Services Tax (SGST)
- The Union Territory Goods and Services Tax (UTGST)
- The Integrated Goods and Services Tax (IGST)
How is GST calculated?
GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180 .
What are the reasons for GST introduction?
The main motive 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 . So the GST system will combine Central excise duty, additional excise duty, service tax, State VAT entertainment tax etc.
What is GST number?
Goods and Services Tax Identification Number (GSTIN) or GST Number is a unique identifier assigned to a business or person registered under the GST Act . GSTIN is utilized by tax authorities to maintain records of GST dues and payments of those who are registered under the GST Act.
How is GST applied?
How is GST applied? GST is a consumption based tax/levy. It is based on the “Destination principle.” GST is applied on goods and services at the place where final/actual consumption happens . GST is collected on value-added goods and services at each stage of sale or purchase in the supply chain.
What type of tax is GST?
SGST ( State Goods and Services Tax ) CGST (Central Goods and Services Tax) IGST (Integrated Goods and Services Tax) UGST (Union Territory Goods and Services Tax)
What is GST limit?
Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).
