iCharts Discussions

[veerjahan]

Goods and Services Tax(GST) is the biggest indirect tax reform of India and it is a single tax on the supply of goods and services. It is a destination based tax. It is a type of value which is added tax and a proposed comprehensive indirect tax levy on sale, manufacture and consumption of goods as well as services at national level. GST will replace all indirect taxes levied on goods and services by the Indian central and state governments, when you have registered for GST, you must charge GST on your supplies at the prevailing rate. GST, that is charged and collected is known as output tax, it must be paid to IRAS. The GST Registration that you earn on business purchases and expenses which is including import of goods is known as input tax. Goods and Services Tax is a consumption based tax or levy and It is based on the “Destination principle.” GST is applied on goods and services at the place where final or actual consumption happens. In each stage of sale or purchase in the supply chain GST is collected on value-added goods and services. The GST rates are 28%, 18%, 12%, and 5% . The components of GST are CGST , IGST,SGST and UTGST. GST is basically an indirect tax that brings most of the taxes which imposed on most goods and services, on manufacture, sale and on consumption of goods and services, under a single domain at the national level. The taxes are levied separately on goods and services, in the present system. GST will replace all the indirect taxes like Excise duty, VAT, CST etc..which is levied on goods and services by Government once it is implemented.