India has had, until now, a very complicated taxation system, but gst.gov.in is the next change its going to see.Suppose a business man wanted to buy the raw goods from another country, bring it to his warehouse, create ready goods, and then sell them to the distributor, he would have to pay a thousand different taxes and employ someone only to manage these taxes. Another problem that stood earlier was the problem with compound taxes. That is some goods are taxed by the centre, and then on top of it, by the state, hence, tax on tax! But all this is going to change with the GST (Goods and Service Tax), which will stop compound taxes, and make tax filings and returns very simple for the businessman or even the common man.
Ten things the common man needs to know about GST and Gst tax rate list–
1. Our first question would be what will the GST replace?
At the central level, GST will replace Central Excise Duty, Service Tax, as well as Additional Duties of Excise & Customs, Special Additional Duty of Customs, and even the cesses and surcharges on supply of goods and services with Gst tax rates in india.
At the state level, GST will be replacing VAT (Value Added Tax), Central Sales Tax, Purchase Tax, Entry Tax, Entertainment Tax, Advertisement Tax, taxes on lotteries, betting or gambling, and state cesses and surcharges.
2. Are there a number of rate slabs?
The Goods and Services Tax (GST) will have slabs ranging from 0 per cent to 28 per cent. A four-tier Gst Tax structure of 5%, 12%, 18% and 28%, has been finalized, where the lower rates are kept aside for essential items while the highest ones for luxury and de-merit goods which will also attract additional cess.
In order to control inflation, items that are a bare necessity, like food grains, will not be taxed included with gst rates item wise.
5% slab will be used for most common goods. And the standard rates of 12 per cent and 18 per cent, will cover fast moving consumer goods and services.
The GST will absorb the unending list of cesses currently in place, which includes the Swachh Bharat Cess, the Krishi Kalyan Cess and the Education Cess. The Clean Environment Cess is the only one being retained, from which certain public compensations will be met as there will be difference when it will be applied by gst rates in india item wise.
3. So, what are the expected fallacies?
The GST is expected tocause a rise in inflation for the short term. The GST rate starts at 5% and 18% on services like restaurants, movies etc. and this is bound to increase prices. Another problem with the GST is that it does not take liquor and petroleum under GST’s control. This has been done not only by the centre but also upon recommendation of the state, so as to make sure a minimum tax is gained by the respective state and central governments.
4. Why bring the GST?
The GST has a high chance of increasing the cash flow to the government as well as bring more people under the taxable group. It will also reduce benefits of not paying tax, as well as make paying tax easier and simpler, by stopping the main problem of
“Taxing tax”.
5. What about sending goods from one state to another?
There will be uniform 1% tax on goods being sent from one state to another and this amount shall go to the states for two years after which the GST council shall decide again.If you are shifting process you can always use gst migration.
6.When will it get implemented?
Although there is no certainty since the last date was missed, but July 1st seems to be the day, when the historic game changing GST through gst website will come to life
7. Do other countries have GST too?
Yes, many countries all over the world have adopted GST.
Some Gst Rates around the globe-
- Australia-10%
- France-19.6%
- Canada-5%
- Germany-19%
- Japan-5%
- Singapore-7%
- New Zealand-15%
8. Is GST different from VAT?
Yes! The main difference is that the GST online will be calculated at the point of sale, whereas the Value Added Tax is a taxed according to destination and excises according to origin.
9. So, does VAT cease to exist?
Yes, if GST comes to being on the 1st of July as it is supposed to, there shall be no more VAT.You can do gst login to get easy access on things.
10. What changes for you and me?
As with any financial announcements, what shall change is that, prices of some items will go up, while some will come down. Necessities like milk and grains and pulses will be found at a lower price, though your weekend hangout at the club, fancy restaurant or movies, might attract a higher pocket pinch. But in the end, it is expected to do bring down prices of basic necessities to make life easier for the common people as the gst rates is cheaper in comparison.
So if you need further clarification or your queries are not solved yet you can always check in at gst.gov.in, The official website of government related to GST resgistration.
The post GST – Goods and Service Tax – 2017 appeared first on mytokri.
