Things you should know about GST and its impact on our daily life

On 1^st July, 2017, the GST launched in India and everyone’s eyes remained on their Televisions, as the new system of Goods and service tax system was introduced to the country. The Goods and Service Tax will fall under five categories; 0%, 5%, 12%, 18% and 28%. The implementation of GST will benefit India’s GDP.

 

There are a lot of things that you need to know about GST. The impact of GST is different for every business. And of course, it will impact on common man’s life. It is truly a game changer for India economy. A leading provider of GST registration in Nirman Vihar, Delhi will let you know some things that you need to know about GST. Here is the list given below.

 

1.    Types of GST

 

There are three types of GST, i.e., CGST, SGST/UTGST and IGST. SGST is liable with CSGT on the supply made by the registered person within a state. UTGST is levied along with CGST on the supply made by the registered person within a union territory.

 

2.    Tax reduction benefits

 

The tagline for GST is “One Nation One Tax”. The aim to launch GST is to clean the multiple tax buckets and lower the burden from end-users. GST is also known as destination based tax, as it would ease inter-state trade of goods and services.

 

3.    Alcohol and petrol have been kept out

 

Things like petrol, diesel, aviation turbine and alcohol have been kept out of GST. Alcohol has been temporarily exempted from the GST. The Decision on these things will be taken by the GST Council after sometimes.

 

4.    GST affects the service sector

 

The short term impact will be seen in the service sector because the tax rate could not shoot up to 18%. Because of reduced cost due to availability of GST credit, prices will come down considerably and will benefit the customers.

 

5.    GST will replace following taxes

 

·         Central excise duty

·         Duties of Excise

·         Purchase Tax

·         Additional Duties of Customs

·         Additional Duties of Excise

·         Luxury Tax

·         Entry Tax

·         Special Additional Duty of Customs

·         Entertainment Tax

·         Advertisement taxes

·         Taxes on lotteries and gambling

·         State Value Added Tax (VAT)

·         Central Sales Tax (CST)

·         Central and State Surcharges and Cesses on goods and services

 

6.    Small business will benefit

 

Introduction of GST will reduce cost of logistics. The companies who have less the 20 Lakhs annual turnover will be exempted from GST. The small businesses will benefit by not meeting detailed compliances. The company with an annual turnover below 75 Lakhs will have to pay 1% tax on turnover.

 

So, these are the basic things that you all were required to know about GST. To know more about GST, you can approach a tax consultant.

 

Consultant for Tax registrations and issues

 

The best consultant, you can approach to know about GST and other tax returns is Tax Home. They are the best consultant for any business tax related queries. They provide services like Company registration, tax filing, payroll services and sales tax registration preet Vihar.

 

 

Author's Note

The author of the article has an extensive experience in the field of GST registration in nirman vihar and sales tax registration in preet vihar