Goods & Service Tax (GST)
Goods and Services Tax is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
Q. WHAT IS GOODS & SERVICE TAX (GST) ?
Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Q. WHAT ARE THE DIFFERENT TAX SLABS IN GST ?
Goods and services are divided into five different tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%.
Q. WHICH PRODUCTS ARE NOT COVERED UNDER GST ?
Petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.
Q. IS THERE ANY SPECIAL RATES FOR SPECIAL ITEMS IN GST ?
Special rates are as follows:
- 0.25% on rough precious and semi-precious stones,
- 3% on gold.
- In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.
Q. WHAT ARE DIFFERENT TYPES OF TAX IN GST ?
There are Four Type of Tax in GST:
- State Goods and Services Tax (SGST ),
- Central Goods and Services Tax (CGST),
- Integrated Goods and Services Tax (IGST) and
- Union Territory Goods and Services Tax (UTGST).
Q. WE HAVE TWO ESTABLISHMENT IN TWO STATES, DO WE NEED TO TAKE ONE REGISTRATION IN EACH STATE ?
Yes, if you are doing the business from two different states, then you need to take two registrations in one state each.