GST is a kind of indirect tax, its full form is Goods and Service Tax.
This bill was passed in India on July 1, 2017, so that any goods or services will be taxed only.
Because before this all were taxed separately and more.
Whose amount was too much. And now due to GST, all these now have to pay a similar tax which has become much easier and better.
In this, instead of VAT tax and service tax and excise duty, now only GST will have to be paid.
Before the GST bill came, we used to pay tax to different types of government to buy any service or goods.
Tax before GST
- Direct tax includes capital gains tax, income tax, and corporate tax.
- Service Tax, Customs Duty, Excise Duty, Value Added Tax are covered under Indirect Tax.
Indirect tax is even more interesting, which we had to pay somewhere (toll tax, education tax)
GST is levied on all types of goods and services. GST tax is not levied only on alcohol.
With the introduction of the GST bill, now any product will be taxed once, according to its MRP. Earlier,
any product was taxed from 30 to 40 percent which is now reduced from 18 to 20 percent due to GST.
What are the types of G.S.T.
GST consists of three types
(1) CGST (Central Goods and Service Tax)
(2) IGST (State Goods and Service Tax)
(3) SGST (Integrated Goods and Service Tax)
- CGST tax is levied in Central Government
- The IGST is imposed in the State Government.
- SGST is applied when a country is sold or purchased from one State to another State.
- There are 5 types of GST taxes in India
(1) @ 0%
(2) @ 5%
(3) @ 12%
(рек) @ 18%
(5) @ 28%
- Normal 18% GST tax is imported everywhere. In some professional places there will be an import of 28%.
After the arrival of GST, 5% tax will be levied on the items of our regular work.
- With the arrival of GST, we can go to any state of India and buy any goods or service,
because due to GST, we have to pay equal tax at all places, that’s why we can sell goods from anywhere. Can buy without any problem.
Just like if we live anywhere in India, if we want a car, if we buy it from Delhi, then we have to pay the same amount as we bought from where we live.
All this has become easier due to the GST.
- With the arrival of GST, there will be no problem in moving any product from one place to another,
because the product will be less due to lower tax and more quantity will be made in the product.
Some important benefites of GST (its basics)
1 One nation one tax:-This means that we belong to the Indian Nation, so we are paying anywhere in India, we have to pay only one bill, which we call GST.
2 Goods that belong to the poor person will be out of the GST.
3 Real-time data will be available in this
4 The problem of raw bills and fixed bills will end
5 Will be controlled in the rate of products
6 Due to the removal of excise duty and the rate of all goods will be reduced. With this, we have to pay only one tax, which will be only 18%.
7 Earlier, 13 to 14 types of taxes were paid to any manufacturing company. Which used to cost more. But with the arrival of GST, it all ended, and only now one tax has to be paid only on GST which is very less.