Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Service Tax »
Open DEMAT Account in 24 hrs
 Income Tax SFT return filing due date extension: Facility to remain open for a couple of days Latest news
 Income tax filing: Waiting for your Form 16? Here is what you need to know
 Salaried? Rental tax calculation rules you should know before ITR filing in 2023
 What are new tax regime's slabs? Know its limits, benefits, and more
 How much additional tax do you need to pay? ITR filing last date for FY 2019-20
 Income Tax Return Filing: How to file ITR - step-by-step guide
 New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
 Income Tax Return filing 2023 data: How many Indians aged 18-35 years file ITR?
 Make tax-saving a part of your overall investment plan
 Filing ITR? Maximize Your Tax Savings With These 7 Allowance Benefits
 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act, 1961 ('Act') in view of the then-Covid-19 pandemic

GST to be soon be a reality: Five things to know about the tax reform
April, 06th 2017

What is goods and services tax (GST)?

It is a destination-based tax on consumption of goods and services. This means the tax would accrue to the taxing authority, which has the jurisdiction over the place of consumption — also termed as place of supply.

How does it work?


It will be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

Which of the existing taxes are proposed to be subsumed under GST?

Central taxes:
Central excise duty
Duties of excise (Medicinal and Toilet Preparations)
Additional duties of excise (Goods of special importance)
Additional duties of excise (textiles and textile products)
Additional duties of customs (commonly known as CVD)
Special additional duty of customs (SAD)
Service tax
Central surcharges and cesses so far as they relate to supply of goods and services

State taxes:
State VAT
Central Sales Tax
Luxury Tax
Entry Tax (all forms)
Entertainment and amusement tax (except when levied by the local bodies)
Taxes on advertisements
Purchase tax
Taxes on lotteries, betting and gambling
State surcharges and cesses so far as they relate to supply of goods and services

Who is liable to pay GST?

Tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption — Rs20 lakh (Rs10 lakh for NE states) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit. The CGST/SGST is payable on all intra-state supply of goods and/or services and IGST is payable on all interstate supply of goods and/or services.

What would be the role of GST Council & GSTN?

A GST Council comprising the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers make recommendations to the Union and the States on all matters relating to GST. The CGST and SGST would be levied at rates to be jointly decided by the Centre and States. The rates would be notified on the recommendations of the GST Council. GSTN is a special purpose vehicle set up to cater for the needs of GST. The GSTN shall provide a shared IT infrastructure and services to central and state governments, tax payers and other stakeholders.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting