GST Registration Services
GST Registration Starting from ₹ 499/- Only.
Key Features of GST
- Comprehensive Tax
- Multi-Stage Taxation
- Destination-Based Tax
- Input Tax Credit
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It is an indirect tax that has replaced many indirect taxes in India, such as the excise duty, VAT, services tax, etc. The GST Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
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What is GST?
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in the supply chain. It is a single indirect tax that has effectively replaced a multitude of indirect taxes in India, such as excise duty, VAT, and service tax, streamlining the overall tax structure. The GST system was introduced in India with the primary objectives of creating a unified national market, simplifying the complex tax regime, and increasing compliance among taxpayers. By integrating various central and state taxes into a single system, GST has aimed to reduce the tax burden on consumers, foster ease of doing business, and enhance the efficiency of tax collection, ultimately contributing to the nation’s economic growth and stability.
Type of GST?
1. CGST (Central Goods and Services Tax):
Levied by the Central Government on intra-state supplies of goods and services.
2. SGST (State Goods and Services Tax):
Levied by the State Government on intra-state supplies of goods and services.
3. IGST (Integrated Goods and Services Tax):
Levied by the Central Government on inter-state supplies of goods and services, as well as on imports.
4. UTGST (Union Territory Goods and Services Tax):
Levied by Union Territories on the supply of goods and services within the Union Territories.
Key Characteristics of GST
1. Comprehensive Tax:
GST is applicable to all goods and services, except a few exempted items. It replaces various indirect taxes previously levied by the central and state governments.
2. Multi-Stage Taxation:
GST is levied at each stage of the supply chain, from the production or import of goods and services to the final retail sale. The tax is collected at every stage of value addition.
3. Destination-Based Tax:
GST is levied at the point of consumption rather than the point of origin. This means the tax revenue goes to the state where the goods or services are consumed, not where they are produced.
4. Input Tax Credit (ITC):
GST allows businesses to claim credit for the tax paid on inputs (raw materials, services) used to produce goods or services. This helps in avoiding the cascading effect of taxes, where tax is levied on tax.
Benefits of GST
1. Elimination of Cascading Effect:
GST eliminates the cascading effect of taxes, meaning tax is levied only on the value added at each stage, not on the entire product value.
2. Simplification of Tax Structure:
By consolidating multiple taxes into a single tax, GST simplifies the tax administration and compliance for businesses.
3. Increased Transparency:
The GST system is more transparent, with a clear and uniform tax rate applied across the country.
4. Ease of Doing Business:
GST has facilitated a unified national market, making it easier for businesses to operate across different states without dealing with various state-level taxes.
5. Higher Revenue Efficiency:
By reducing tax evasion and increasing compliance, GST has improved revenue collection for both central and state governments.