Who will pay tax, who will get the discount, this is the whole ABCD of GST
Who will pay tax, who will get the discount, this is the whole ABCD of GST: GST will be implemented in the country from midnight on June 30. It is believed to be the biggest tax reform since Independence. Even though many people still do not understand that GST is the end. Will all taxes be over after it arrives? Will every person come under the GST?
- How many tax will it cost? Who will give GST?
- Whether the common man will be in the realm of GST or not?
- We tell you at 10 points that after all GST will be due.
GST is a destination based consumption tax levied at multiple stage of production & distribution of goods & services in which taxes paid on inputs are allowed as setoff against taxes payable on output. Thus, GST will be a single comprehensive integrated indirect tax on pure value addition at each stage
ABCD of GST
What is GST
- GST is basically a destination based tax.
- It means that any goods or services will be taxed where they will be sold.
- So far it was there where the stuff was made.
- Suppose that there was a face in Gujarat and it was sold in UP.
- In the previous regime, there was tax in Gujarat. At the same time, the tax in Regim will be seen in UP.
What will happen
Therefore, all these direct taxes will be lost and the same tax will remain, which will be named GST.
It means that only one tax will be charged instead of the excise duty, service tax and VAT charged at different levels.
It’s like this
- Suppose a fan is formed. After production, excise duty takes place only in the factory.
After leaving the factory, he used to get entry tax on any state he entered.
- Where it was sold it seems to be VAT.
- Three times tax on the same product. If that fan went through 5 states, then 5 times the entry tax.
- But now they will just replace GST once. The rest of the tax ended
How cheap the stuff
In the earlier tax system many tax slabs were used in slabs, which meant that tax was reaped after the tax was imposed again. Now it will be taxed at once. This will end the possibility of taxes tax.
At the same time, the same amount of entry was done on the same number of states as it went through, so the cost of the product was increased.
Think of it
Suppose a shoe is made in Gujarat. His cost came to Rs. 100, After creating it, he got 12% excise duty. Price reached Rs 112
Suppose he passed through three states, every state on it has an entry tax tax of 2 per cent. The price was increased to Rs 7.5 and the price reached around Rs 120. Now sales tax on sale is 6% VAT now The price was about 128 rupees.
The Maximum Rake of GST is 18 percent on shoes in GST Regime. Meaning 100 rupees and 18 rupees tax. The total price was about 118 rupees.
Dual GST Model Introduced in India
India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources.
Adual GSTwill, therefore, be in keeping with the Constitutional requirement of fiscal federalism. GST in India will be dual model based – i.e. state and central govt will both levy GST termed as SGST and CGST respectively.
However, chargeability, definition of taxable event and taxable person, measure of levy including valuation provisions, basis of classification etc. would be uniform in both CGSTand SGST
Why do not you look at any baggage tax twice
In fact, the provision of input tax credit under GST has been made. The same product will be taxed at the same time.
(दरअसल जीएसटी के तहत इनपुट टैक्स क्रेडिट का प्रावधान किया गया है। इसके चलते एक ही प्रोडक्ट पर एक ही बार टैक्स लगेगा।)
- Suppose you are manufacturing something. On the basis of your merchandise you make a liability of Rs.10 thousand.
- At the same time, you have already given a tax of 3000 thousand rupees in the purchase (input) for manufacturing. In this case, you will have a tax liability formula that will be of total output-input.
- Mean 10,000-3000 = 7000 rupees you have to pay tax. You will get input credit of Rs. 3 thousand rupees.
Recommended Articles –