A very brief description about GST

 

GST in a nutshell

 

A very brief description about GSTGST in Brief with simple and easy to understand for a layman below:


In short, GST means Goods and Service Tax eliminating many indirect taxes like VAT, Central Excise duty, Sales Tax, Service Tax etc. etc. It is described as one tax for one nation. GST is classified under three categories; CGST which means Central Goods and Service Tax, IGST which means Integrated (Interstate) Goods and Service Tax and SGST, State Goods and Service Tax.


To make you briefly understand in simple and easy language, GST eliminates the present following taxes and introduces news Tax of CGST, IGST and SGST:


Service Tax

Central Excise Tax

Additional Excise Duties

CVD, Additional Customs Duty, commonly known as Countervailing Duty

SAD, Special Additional Duty of Customs - 4%

The Excise Duty levied under the Medicinal and Toiletries Preparation Act

Surcharges, and Cesses

VAT / Sales tax

Luxury tax

Taxes on lottery, betting and gambling.

Entertainment tax (unless it is levied by the local bodies).

State Cesses and Surcharges in so far as they relate to supply of goods and services.

Entry tax not in lieu of Octroi.


It is a destination based tax on consumption of goods and services.  It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.  In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.


I hope the above information explains a very short and brief description about GST, Goods and Service Tax.



You may comment below about the above brief note on GST

 

 

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Comments


Naresh Kumar: REFERENCE GST BILL PASSED ON 03.08.2016 BY RAJYA SABHA - HOW DOES IT ACCOUNT FOR THE REFUND OF TAX PAID ON PURCHASE/SERVICE BY THE EXPORTER? I WOULD REQUEST FOR THE CLARIFICATION ON THIS POINT. IF AN EXPORTER HAS TO PAY GST @18% IN STEAD OF 5%, AND GETS REFUND OF THE TAX PAID SAY AFTER TWO YEARS (AS PRESENTLY IT IS THE NORMAL PERIOD TO GET THE REFUND FROM SALES TAX OFFICE), HIS ADDITIONAL INVESTMENT @13% WILL REMAIN BLOCKED FOR TWO YEARS. WHAT IS THE SOLUTION/RELIEF THAT IS PROVIDED IN THE THE BILL?

Admin: Hi Naresh Kumar, GST Act 2016 has not come in to force, expected by next year. GST constitutional amendment bill only passed, GST Bill is likely to be passed in November, 2016

Prakash Dhal : Let please explanantion how it impact the export & import in brief

manu dhiman: dear sir can you provide gst video then i will learnt the easly

shivani : Its help me alot in understanding the tax structure in India including GST,seriously its a very easiest way of understanding the things very cleary i am very glad and satisfied while reading this article. Its wondeful way of explaining that difficult things in a easier language thanks a lot ^_^

Tina Dabi: Wow! What a description. Thank you so much.

Govind: It will be helpful, if you can continue with the example of Bakery and explain same for GST as you explained for VAT i.e. how much tax individual have to pay when he finally bought cake. Thanks

Manoj Jain: How can we implement one tax for one nation in federal country?

kiran: It will be helpful, if you can continue with the example of Bakery and explain same for GST as you explained for VAT i.e. how much tax individual have to pay when he finally bought cake. Thanks

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