Goods and service tax is indirect tax or consumption tax that are employed on goods and services in India the goods and service tax is imposed on every step in the production process it is collected from point of conception and not the point of origin like previous taxes it is comprehensive multistage and destination based tax. The tax rates rules and regulations are governed by the GST council which consists of the financial ministers of the central government and all the states. GST are divided into 0% 5% 12% 18% 28% rate of taxes. There is a special rate of 0.25 percent On rough precious and semi precious stone and 3% on gold. Pre GST the statutory tax rate for most goods where about 26.5% post GST most of the goods are expected to be in the rate of 18% tax range.
The GST replaced existing multiple taxes live it by the central and state government positive outcome of the GST includes the travel time in interstate moment drop by 20% because of disbanding of interstate check post. The Asim Pargupta committee which was put in place back end technologies and logistics later came to be known as GST network. Later came or for rolling out a uniform taxation regime in the country. The GST was strongly opposed by the opposition Indian National Congress it is one of the few sessions that have been held by the parliament where a panel of federal and state financial ministers decided to revise GST rates on 28 goods and 53 services the party’s reported that they found virtually no differences between the GST and existing taxation system they argued that the GST would increase existing rate on commodities like daily goods while reducing rates on luxury items and also affected for the middle lower middle and four income groups importantly. The reverse charge mechanism is where the GST liable fish on the receiver a tax on the behalf of unregistered smaller materials and services suppliers. And the goods get the eligibility of income taxes which are not enjoyed by the under jasta dealers.
Alcohol for human consumption petrol and petroleum products like petroleum Crude high speed Diesel motor spirit natural gas aviation turbine fuel and no GST applicability. Revenue distribution that are earned from GST were equally shared in interstate seller and buyer on 50-50 basis between the central and respective state governments. The GST council is the governing body of 33 members consisting of two members from Central and 31 members from 28 states and three union territories with legislature the GST council is an Apex member committee to modify reconcile or to procure any law or regulation based on the contacts of GST tax in India. The GST council is responsible for any revision or a enactment of rules aur any rate changes of the goods and services. The gstn software air is developed by the the Infosys technology and information technology network that provides the computer resources is maintained by NIC, goods and service tax network (GSTN) economic profit organisation formed for creating a a sophisticated network accessible to stakeholders government and taxpayers to access information from single source portal. The value addition in case of manufacturers make biscuits by sugar flour another for materials for manufacturing of biscuits the manufacturer then sells the biscuits to the warehouse and then the process continues till the biscuits reaches the final stage the GST is lived on the value addition such as the monetary value added at its States to achieve the final sale to the end customer.
Since the GST tax is the point of conception centre tax revenue will go to the the Karnataka not to Maharashtra. The advantage of goods and service tax are details to remove the cascading effect to tax higher threshold for goods and service tax registration composition scheme for small business simple online facility for GST compliance increased efficiency in logistics helps in single price reduction some of the disadvantage of goods and service tax are increase in cost of software adapting to a complete online access in system GST will mean an increase in operational cost. Some of the indirect taxes are Central excise duty cess state VAT Central sales tax purchase tax luxury tax entertainment tax and taxes on advertisement
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