GST bill brings in a different tax structure in India and it’s important to know the things properly. Especially for common Indian man, this is a new abbreviation GST (Goods and Services Tax). This is a kind of indirect tax which has replaced many indirect taxes in India. This act was passed in the parliament on the 29th March 2017.
GST is one indirect tax for the entire country. The GST is paid by consumers, and the companies are liable to forward this tax amount to the Government. This tax is one of the biggest indirect tax reforms in the country. It is expected to bring all state economies together to improve the overall economic growth of the whole nation.GST is a destination based tax where the state collects the tax on different goods.
Knowing About GST
A country with a united GST platform merges various central taxes such as sales tax, excise duty tax, and service tax) with state-level taxes (e.g. entertainment tax, entry tax, transfer tax, and luxury tax) and collects them as single tax. These countries tax almost everything at a single rate. The businesses owner adds the tax amount to the price of the product, and a customer who buys the product pays the sales price plus GST. The tax portion is collected by the business or seller and forwarded to the government. It is also mentioned as a Value-Added Tax (VAT) in some countries.GST rate is predicted to be 18-20% which is slighter than the tax burden of indirect taxes.
Different Types of GST
Here are mentioned different types of GST knowing which you can handle the features in the right way:
- SGST is added to the supply of goods by a registered vendor within the State. SGST is attached along with CGST ensuring that the goods won’t get charged high.
- UTGST is levied on different kinds of stuff delivered by a registered person within a Union Territory.
- IGST is levied on imported goods or Inter-state supply of goods. IGST is equivalent to the total amount of CGST and SGST.
So, you get a clear view of different types of GST that helps you to handle your business in the right way. You can now give your business a new start featuring the smarter options and thus you become the real entrepreneur. In this regards, you can also consult with a tax consultant who helps you to know the facts in detail.
GST replaces all 17 indirect taxes with a single tax. Increase in product demand will eventually increase tax income for state and central government.GST rates are useful to the middle classes and below middle classes. Upper middle classes and upper classes will pay more for the goods.