Goods and Services Tax – Started By: – Sanjeev jha – Dated:- 1-12-2010 Last Replied Date:- 2-12-2010 – Please tell me how can I find the slab of taxes commodity wise. For Delhi only. 2.What is GST tell me some thing about it. – Reply By RUPESH NAGPAL – The Reply = The reformed indirect tax system GST-Goods and Service Tax is proposed to implement in INDIA on and from 1st April 2011 (Still not clear how the Government be doing this). Do you know, several countries implemented this tax mechanism followed by France which was the first country introduced GST. To simplify the understanding about the Goods and Service Tax (Papularly known as GST and hereinafter called as GST ) it may be called a new version of VAT which gives a comprehensive setoff for input tax credit and subsuming many indirect taxes from state and national level. The GST Implementation deadline is not yet cleared by government (i.e. 01/04/2011) and the clarification (within the Committee of State Finance Ministers) of dr
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State VAT on CST, Entry tax on VAT etc. So the Govt must have decided to abolish tax on tax effect by implementing GST. ii. Shortfall of Existing VAT Indirect taxes like luxury tax, entertainment tax, (which are charged as extras to VAT) are yet to be included in the VAT. These taxes are still existing and payable. iii. Shortfall of Existing CENVAT Several taxes like additional customs duty, surcharges not included under CENVAT. Input tax and service tax set off (to a certain extent) is out of reach to the manufacturer and dealers. Benefits of GST <!-[if !supportLists]->1. <!-[endif]->GST provide comprehensive and wider coverage of input credit setoff, you will be able to use service tax credit for the payment of tax on sale of goods etc. <!-[if !supportLists]->2. <!-[endif]->CST will be removed and need not to collect and pay. As we all know that at present there is no input tax credit available for CST. <!-[if !supportLists]->3. <!-[endif]->Many in
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ed with GST State taxes <!-[if !supportLists]->1. <!-[endif]->VAT/Sales tax <!-[if !supportLists]->2. <!-[endif]->Entertainment Tax (unless it is levied by local bodies) <!-[if !supportLists]->3. <!-[endif]->Luxury tax <!-[if !supportLists]->4. <!-[endif]->Taxes on lottery, betting and gambling. <!-[if !supportLists]->5. <!-[endif]->State cesses and surcharges in so far as they relate to supply of goods and services. <!-[if !supportLists]->6. <!-[endif]->Entry tax not on in lieu of octroi. <!-[if !supportLists]->7. <!-[endif]->Purchase tax (This is not sure still under discussion) Central Taxes <!-[if !supportLists]->1. <!-[endif]->Central Excise Duty. <!-[if !supportLists]->2. <!-[endif]->Additional Excise Duty. <!-[if !supportLists]->3. <!-[endif]->The Excise Duty levied under the medical and Toiletries Preparation Act <!-[if !supportLists]->4. <!-[endif]-&
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CGST statute and SGST statute for every state. Taxable event Supply of goods and supply of services will be considered as taxable event under GST. In simple way any economic activity which is not supply of goods will be treated as supply of service. Tax payer identification number Each tax payer will be allotted a PAN based identification number containing 13 or 15 digit number ( as of now this feature is used for the grant of the service tax code or central excise No). Payment of tax This is proposed that the central GST would be paid to central and state GST paid to state government in the prescribed account head. Collection of GST It is same as VAT; Tax is collected on the basis of value addition on each stage of sale. Both CGST and SGST would have to be charged in an every service bill and sale bill and paid after adjusting input credit available on both. Input tax credit setoff In m y opinion as proposed the input tax credit of SGST can be utilized for the payment of SGST only an
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ices are exempted under GST. The dealer whose turnover is below prescribed limit need not pay tax. In my opinion and to the best of my knowledge and belief threshold for annual turnover for goods and services would be 10 lakh for SGST and threshold of CGST for goods may be 1.5 crore and service would have a separate threshold that too will be appropriately high. GST rates As we all must know by now that the rate structure would be as follow, but not final <!-[if !supportLists]->1. <!-[endif]->A lower rates for essential commodities <!-[if !supportLists]->2. <!-[endif]->Standard rates for general goods <!-[if !supportLists]->3. <!-[endif]->Special rates for precious metals <!-[if !supportLists]->4. <!-[endif]->For services may be single rates for CGST and SGST. During the first and second year GST on goods will charged in two rates. i.e. Goods at lower rate for necessary items and goods of basic importance ,Goods at standard rate for goods
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