Goods and Services Tax Act 2017 India

The Central government passed four sets of Good & Services Tax in 2017 in india.It is an indirect tax was introduced  on 1 July 2017 and was applicable throughout India. The four sets off GST Acts  are  Central GST Act, 2017; Integrated GST Act, 2017;, 2017 and GST (Compensation to States) Act, 2017. the Parliament approved the Acts after they were introduced as the part of the Money Bill.  All registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. Everyone is interested to know about GST bill. This bill is remarkable changes in india’s indirect tax changes since the beginning of the economy.

 

As per GST Acts goods and services are taxed at the following rates, 0%, 5%, 12% ,18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.  a cess  addition of 15% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.

This  GST system will have two components which will be known as________

  • Central Goods and Service Tax (CGST) and
  • State Goods and Service Tax (SGST).

BENEFITS  OF  GST  BILL  :-

 

  • This is lean & simple tax structure
  • Multiple taxation is deleted
  • this is good for export oriented businesses. Because it is not applied for goods/services which are exported out of
  • Good and services are taxed at the same rate & also
  • The Suppliers, wholesalers ,manufacturers, and retailers are able to recover GST incurred on input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices for consumers.
  • Tax on services would go from 14 to 20% after the implementation and on retails will almost get double.

All GST-related rules can be read on this link like: http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format (copy paste in a separate window).  GST needs to filed via a common portal to be run by GSTN, promoted by the central and state governments. The link for GST Act 2017 PDFis: http://www.cbec.gov.in/resources//htdocs-cbec/gst/consti-amend-act-101-2016.pdf  (Copy paste the link in a separate window.

 

GST Forms: There are  the details of different types of forms to be filed under GST law: Form GSTR-1: To file details of outward supplies of taxable goods and/or services effected by registered taxable supplier on 10th of the next month; Form GSTR-2: To file details of inward supplies of taxable goods and/or services effected claiming input tax credit by registered taxable recipient on 15th of the next month; Form GSTR-3: To file monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax by registered taxable person on 20th of the next month; Form GSTE-4: To file quarterly return for compounding taxable person by composition Supplier on 18th of the month succeeding quarter;.

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