The Features and Advantages of GST Bill in India 2017
What is GST bill in India?
GST stands for Goods and Service Tax. The indirect tax on production, sale and consumption of goods and services at national and state level. It is introduced to replace many indirect taxes and services like State VAT, central Sales Tax, Entertainment and amusement Tax, Entry Tax, Purchase Tax, Luxury Tax, Tax on Betting, Lottery and gambling by the Indian state and central government.GST is consumption based tax, it means that the state in which final sale to consumer is made to entitled to get the tax. GST is applicable to all goods other than crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas.
What are the Particular taxes which are replaced by GST?
GST would replace following taxes
- Taxes currently levied and collected by Central Government
- Central Excise duty
- Duties of Excise – medicinal & toilet preparation
- Additional Duties of Excise – Goods of Special Importance
- Additional Duties of Excise – Textiles & Textile products
- Additional Duties of Customs (CVD)
- Special Additional Duties of Customs (SAD)
- Service Tax
- Central surcharges and cesses so far as they related to supply of goods and services
Taxes currently levied and collected by State Government
- State VAT
- Central Sales Tax
- Luxury Tax
- Entry Tax
- Entertainment and Amusement Tax
- Taxes on Advertisement
- Purchase Tax
- Taxes on lotteries, betting and gambling
- State surcharges and cesses as they related to supply of goods and services
Administration of GST in India
There will be two divisions of GST
CGST (Central Goods and Service Tax)
SGST (State Goods and Service Tax)
As per the bill extra added Tax not exceeding 1% on the supply of goods within state trade should be collected by the centre.
Such extra tax can be directly assigned to the states from where the supply originates. This would not be a part of the Consolidated Fund of India (except for the amounts due to the union territories).
This can be executed for a period of two years, or as recommended by the GST Council. The centre may exempt certain goods from its preview and formulate principles for the determination of place of origin related to supply of good.
The Bill proposes that the GST Council can recommend for setting up of an Integrated GST (IGST). the centre might levy and collect GST on provided with the course of inter-state trade or commerce. The tax collected would be divided between the centre and therefore the states as per law.
GST can replace a multiplicity of taxes on product, like excise duty on autochthonous manufacture and on imports, VAT, CST, purchase tax, entry tax, and varied cesses and surcharges. it’ll additionally replace amusement tax, luxury tax, taxes on advertisements and taxes on lottery, sport and gambling. moreover, GST are going to be accessible as input step-down.
The levy of GST are going to be at the same time created on identical dealing by the states and central. Consequently, the subject price are going to be identical for the aim of each state & central GST.
GST feature helps you to maintain taxes based on products. It shows complete GST details by using Asimot point of sale software.
