Whenever common people talk about GST question arise in their mind that what is GTS? What is meant by GST bill? What is the rate of GST? What is GST all about?
So here are some answer and gossip on GST for people, who are still having confusion and doubt on GST.
What is GST?
The Goods and Services Tax (GST) which is a value-added tax levied on most goods and services sold for domestic consumption is mainly know as GST. In effect, GST provides revenue for the government. Also referred to as Value-Added Tax (VAT) in some countries.
What is meant by GST bill?
The Goods and Services Tax bill, touted to be India’s biggest tax reform, will simplify the current system of taxation. The bill will convert the country into a unified market by replacing all indirect taxes with one tax. Goods and Services Tax bill is a Value added Tax (VAT) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and state governments.
What is the rate of GST?
GST rates out and a near certainty of implementation with effect from 1st July, Recently GST Council Decide 4 GST Rates Slabs for India, i.e GST Rates in India is 5%, 12%, 18% & 28%.Under the new structure, judging from the initial list of 1,211 items, the predominant share (43%) of goods will be taxed at 18%, while 17% and 14% of the notified items will fall under the 12% and 5% tax rate slabs, respectively. Around 7% of the items, which include essential goods such as milk, fruits, cereals and poultry, have been exempted from all taxes. A significant share (19%) of goods, however, has been tucked under the highest tax slab of 28%: many of these cater to the daily needs of the growing middle class. After the total GST rate is arrived the centre and state will decide on the CGST and SGST rate.
What is GST all about?
Goods and Services Tax (GST) is an indirect tax reform which aims to remove tax barriers between states and create a single market. For that to happen the constitution first needs to be amended to remove different layers of governments’ exclusive powers to levy taxes. GST is a consumption based tax/levy. It is based on the “Destination principle.” GST is applied on goods and services at the place where final/actual consumption happens. GST is collected on value-added goods and services at each stage of sale or purchase in the supply chain.