Daily Updates: GST(Goods and Service Tax) in india

By Now we might have familiar with the word GST by looking at news channels and News papers spreading these days.

below are the details about GST bill in india.

Goods and Services Tax (GST) is an upcoming system of taxation in India which will merge many individually applied taxes into a single tax. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016, following the passage of Constitution 101stAmendment Bill. The GST is governed by GST Council and its Chairman is Union Finance Minister of India - Arun Jaitley.

GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India to replace taxes levied by the central and state governments.

This method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part of their normal commercial activity. Administrative responsibility would generally rest with a single authority to levy tax on goods and services. Exports would be considered as zero-rated supply and imports would be levied the same taxes as domestic goods and services adhering to the destination principle in addition to the Customs Duty which will not be subsumed in the GST.

How GST Works in India

GST is the integrated indirect tax which is levied on the Supply of Goods and Services. There will be dual GST with the Center and State simultaneously levying it on the common tax base. The CGST and SGST will be charged on intra-state supplies whereas IGST will be charged on inter-state supplies. The small business having turnover up to Rs. 20 Lakhs are exempted from GST under. All the other taxpayer having the turnover of more than Rs. 20 Lakhs (Rs 10 Lakhs in northeast States) are required to register and pay GST. The Commerce and finance graduates can become GST Return Preparer (GST Practitioner) to file return on behalf of taxpayers.

Effects of GST

The tax rate under GST may be nominal or zero rated for the time it charged. It has been proposed to insulate the revenues of the States from the impact of GST, with the expectation that in due course, GST will be levied on petroleum and petroleum products. The central government has assured states of compensation for any revenue losses incurred by them from the date of introduction of GST for a period of five years.

GST on Exports

Under the GST Law, export of goods or services are treated as Zero rated supplies, therefore, GST will not be charged on the export of goods or services. The credit on inputs used for making export supplies will be available to the exporter. The exporters have two options either to export goods under Bond and claim refund of input credit or to export goods under rebate claim and claim the refund of output tax.

The following taxes will be bound together by the GST: