This is Ravi Verma, In this article, I will let you know about the types of GST.
Let’s get started.
What is the GST?
Goods and Services Tax, is an indirect tax imposed on the supply of goods and services. On 1st July 2017 GST come to India and after the coming of GST, all the indirect taxes had been removed by the Indian government only one tax has implemented on it which is called GST.
What are the types of supply in the GST?
There are 09 types of GST supplies there.
- Non-GST supply – Section 09 of the CGST Act, 2017 defines items on which GST will not be levied. What type of supplies on which no GST rate is applicable and are not included in GST slab, then such supply is called non-GST supply. Like – alcohol, petrol, natural gas, diesel, motor spirit, and aviation turbine fuel.
- Exempt supplies – Section 11 of CGST Act 2017, The supply which has been kept under the purview of GST and no tax rate has been imposed on it, then we call exempt supplies. Like – Agriculture products, fish, education, and healthcare service.
- Composite supply – Section 2(30) of CGST Act, 2017 defines the “composite supply” such supplies as the conjunction of two supplies one of which is a principle supply in the ordinary course of business.
as per section 2(90) of CGST Act, 2017 “Principal supply” means a supply of goods and services which is the predominant element in composite supply.
as per section 8 of the CGST Act. 2017 composite supply is treated as principle supply and hence GST rate of principal supply shall be levied on complete supply.
Like – Mobile and Charger,
- Mixed supply – When we are going to buy any gift like a chocolate box and a celebration packet under this box many types of flavors of chocolates are there it is called mixed supply and the higher GST rate charge on it.
Like:- Chocolate boxes, Diwali Gifts, and for Holi snacks, etc.
- Zero-rated supply – Section 16 of the IGST Act, 2017 defines “Zero Rated Supply” it means when we are buying and selling goods or services both to a special economic zone then this supply is called zero-rated supplies because the government has fixed it like a separate zone.
Examples – Gujarat, Chennai, Tamil Nadu, utter Pradesh, etc.
- Intra-state supply – When we are buying and selling any goods or services in the same state then these types of supplies are called intra-state supply. and the government has charged CGST 9% and SGST 9% on intra-state supply.
- Inter-state supply – When we are buying and selling any goods or services from 1 state to another state then these types of supplies are called inter-state supply. and the government has charged 18% of IGST on inter-state supply.
- Out word supply – When we sold any goods or services to another person then these types of supplies are called out word supply.
- Inward supply – When we purchase any goods and services in our business then these types of supplies are called inward supply.