GST Registration
One India, One Tax- All you need to know about GST
Goods and Service Tax is one of the most talked about topic in India. We have heard a lot about it read a lot about it. Some of us support it while others may hold a different perspective. All I can say that change is not easily digestible. Whatever be the talks, GST is sure to bring economic revolution in India which was much awaited.What is GST ?
Literally, the world GST means Goods and Service Tax, it's an end to all the taxes which a person or a businessman or anyone had to pay who availed any kind of services or bought or manufactured or sold a product. Prior to GST, there were many taxes which were imposed on people, the likes of which included, VAT, Service tax, excise etc.
The GST Framework
It is clear by now that GST will replace a number of taxes that were levied upon people.
There will be two broad form of GST in India:
- The Intra-state level
- The Inter state level
The intra-state level will further be bifurcated into two types of taxes:
- CGST or the Central Goods and Service Tax
- SCGST or the State Goods and Service Tax
The inter-state level will have the Integrated Goods and Service Tax.
You should also know that the imports will be considered under the inter-state tax while the exports will be rated zero, along with it the supplies to the SEZ will also be rated zero.
Different tax slabs under GST
The GST Council has decided 5 different tax slabs and they are as follows:
- 0 %
- 5 %
- 12 %
- 18 %
- 28 %
All the products and services are now going to fall under these five categories.Here is a brief overview of the different products falling under the different tax slab:
Positive Impact of GST:
- Lesser tax compliance.
- It will help in removing the cascading effects of taxes.
- It will cut down the manufacturing cost
- It has helped in reducing the cost of certain cars, FMCG goods.
- It will lead to seamless movement of goods across states
- It will also cut down the transaction cost of business.
- It is expected that GST will add 2% to the GDP of the nation.
Experience
Skills
Employees
Negative Impact of GST:
- Certain services are likely to become expensive like banking, airlines, credit cards, telecom.
- It’s a new tax system and hence, it will take time for people to get accustomed to it.
Takeaways- All-in-all , GST has brought in economic revolution in the nation, however, its impact is still to be observed which we will get to know with time , but for now, the nation is under one tax slab which is a positive move.