What is gst? Know GST (Goods and Services Tax) Law in India
Updated On October 14th, 2018
GST is an indirect tax In this article we will try to find answer for following:
What is GST?
What is the full form of GST?
Benefits of gst
Who and when GST Launched in India?
GST Act and its components
What is GST in Hindi?
1. What is gst ?
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the producer’s point and service provider’s point upto the retailer’s level. It is essentially a tax only on value addition at each stage(multi stage), and a supplier at each stage is permitted to set-off, through a tax credit mechanism, this tax paid on the purchase of goods and services as available for set-off on the GST to be paid on the supply of goods and services. It is destination based tax
GST is Good and Simple TAX
-Hon’ble Prime Minister of India Shri Narendra Modi
GST is an Indirect Tax and works upon Value Addition Tax principle . India is divided in states and union territories and each state have their own TAX structure.
Multi Stage Tax
GST levied on multi stage and this is one of the motive to bring it, It works on supply chain taxation principle i.e each supplier has to charge tax on their invoice instead till it reach to end consumer. It eliminate the single point taxation.
- Purchase of raw materials
- Production or manufacture
- Warehousing of finished goods
- Sale to wholesaler
- Sale of the product to the retailer
- Sale to the end consumer
tax is require to charge on each “supply”
The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
For example: Dealer of Goods From Delhi to Noida(UP) to consume goods in noida, He will charge IGST on it. As the goods are consumed in Noida(Uttar Pradesh), the entire revenue will reach to Uttar Pradesh not in Noida.
2. Full form of GST
Full Form of GST is “GOODS AND SERVICES TAX”
goods and services tax
3. Benefits of gst:
The main motive to bring GST in India is to provide a uniform tax structure in whole India and to eliminate double taxation on the same goods and services.
Some benefits of gst are:
- Remove cascading tax effect
- Uniform act and rates structure in whole India
- Stop tax evasion by bringing supply chain taxation
- Availability of Input Tax without any state barrier
- Simplify the gst return procedure
- Bringing E-commerce in tax bracket
- To Ease of Exports and Imports procedure
4. Who and when GST Launched in India?
The GST was launched at midnight on 1 July 2017 by the President of India, Pranab Mukherjee, and the Government of India. The launch was marked by a historic midnight (30 June – 1 July) session of both the houses of parliament convened at the Central Hall of the Parliament.
Read full gst history
GOODS AND SERVICES TAX Finally implemented in India on 01 July 2017.
5. GST Act and its components
There are 3 taxes applicable under this system: CGST, SGST/UTGST & IGST.
- CGST: Collected by the Central Government on an intra-state sale
- SGST: Collected by the State Government on an intra-state sale
- IGST: Collected by the Central Government for inter-state sale
6. What is GST in Hindi ?
VASTU OR SEVA KAR Visit GST hindi website
More to read
Know more: GST history in India
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GST : What is gst? Know Goods & Services Tax Law in India