GST (Goods And Services Tax)
It has been announced that GST (Goods And Service Tax Will be Implemented from 1st July 2017.
Under GST, there will be different rates for Goods and Services as 0%, 5%, 12%, 18% and 28%.
GST is an indirect tax that will replace all earlier taxes like Central Excise Duty, Commercial Tax, Value Added Tax (VAT), Food Tax, Central Sales Tax (CST), Octroi, Entertainment Tax, Entry Tax, Purchase Tax, Luxury Tax, Advertisement tax etc. levied by central and state government. It will be levied on value addition only.
Who Will Provide Platform |
A non profit organization "Goods and Services Tax" Network (GSTN) has been formed to create a platform for all the concerned parties i.e. stakeholders, government, taxpayers to collaborate on a single portal.
Share Holding of Central and State Government in GSTN |
Central Government - 24.5% of shares
State Government - 24.5%
Private Banking Firms - 51% of Shares
Kind of GST |
There will be three kinds of GST -
1. CGST - Revenue will be collected by the central government
2. SGST - Revenue will be collected by the state governments for intra-state sales
3. IGST - Revenue will be collected by the central government for inter-state sales
We can understand use of above three kind of taxes in below two statements -
1. If sale will be done within the state, Revenue will be shared between the Central and the State means CGST and SGST will be applicable.
2. If sale will be done to another state, only one tax will be applicable that is IGST and it will be collected by Central.
A Unique number will be given to all Tax Payers / Business Entity named as GSTIN under GST.
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