Insight of Goods and Service Tax in India
Goods and services tax is an indirect tax levied on a supply of goods and services from the manufacturer to the end customer. It has recently replaced with multiple indirect tax structure in India. Now tax is collected only on value addition at each stage of sale or purchase of goods and services. The end consumer has to bear only tax charged by the last dealer, no double taxation. It has abolished multiple taxations into the single tax system. It will be in two component state GST (SGST) and Central GST (CGST)
GST got implemented in India from 1st July 2017. GST has brought the new concept of GST compliance rating. It refers to the performance ranking of all registered taxable person in India. It is done to compel people for GST compliant and on time uploading of invoice. Here both the seller and purchaser are involved that is a person can claim for filling GSTR-2 only when a seller has also filled GSTR-1. The both side details will be compiled in this way.
According to new GST regime, all the entities involved in buying and selling of goods and service has to register GST. One who claims for the input tax credit of GST will be charge penalty.
Any entity with an aggregate turnover Of Rs 2o lakh in a financial year needs to be registered. In a special category of states, the aggregate turnover is of Rs 10 Lakh in a financial year need to have GST registration. The cost of registration will be around Rs 1500 for more details visit GST official page.
Acts and rules
The GST is based on various acts like The Taxation Law Amendment Act 2017, The goods and services Tax 9compensation to states) act 2017, The Union Territory goods and services tax act 2017, The Central Goods and Services Act 2017 and the constitution act 2016.
It covers various rules like Integrated Goods and Service Tax Rule 2017, Goods and Service tax compensation cess rules 2017, central goods and service tax rules 2017. It has all Union Territory Rules like Union territory Goods and Services Tax (Lakshadweep) Rules 2017, Union territory Goods and Services Tax (Daman and Diu) rules 2017 etc. Some other rules are like Anti-profiteering rule 2017, GST refund final rule 3-6-2017 and much more rules.