GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition a .
Tax Structure in GST:
-Direct Tax : Income tax , Corporate Tax, Weath Tax.
-Indirect Tax: Excise Duty, Custom Duty, Service Tax, Octroi Tax, VAT.
History of GST in India :
France was the first country to implement the GST in 1954, and since then an estimated 160 countries have adopted this tax system in some form or another.
Feb.,2006, first time introduced concept of GST and announced the date of its implementation in 2010.
Goods And Services Tax was launched all over India with effect on 1 July 2017.
The Jammu and Kashmir state legislature passed its GST act on 7 July 2017.
Under ensuring that the entire nation is brought under a unified indirect taxation system.
Slabs of the GST:
The announcement of the tax slabs by the GST , The biggest economic reform since the 1991, a step closer to implementation by 1st April 2017. The GST council has agreed upon four tax slabs – 5%, 12%, 18%, 28%. An additional case will be on certain luxury goods like high end cars, pan masala, and tobacco etc.
| 5% | 12% | 18% | 28% | 0% |
| Spices, Mustard oil,tea.etc. | Milk, Bread, Processed Food Items. | FMCG Product, Refrigerators,
Mobile bill. |
Luxury cars, Tobacco etc. | Food grains, rice, wheat etc. |
TYPES OF GST:
CENTRAL GOODS & SERVICES TAX :
Under GST, CGST is a tax levied on intra State supplies of both goods and services by the central government and will be governed by the CGST Act.
STATE GOODS & SERVICES TAX:
Under GST, SGST is a tax levied on intra state supplies of both goods and services by the state government . CGST will also be intra state supply but will be governed by the Central Government.
INTERGRATED GOODS & SERVICES TAX:
Under GST, IGST is a tax levied on all intra state supplies of goods and services and will be governed by the IGST. Any supply of goods & services in both cases of import into India and export from India.