GST( Goods and Services Tax) l What is GST in India, GST rates and all about GST Registration, News

GST( Goods and Services Tax) l What is GST? in India, GST rates and all about GST Registration and Calculation:-

This article will help all new businessmen or other person having least knowledge about GST to know basic information about covered topics that are - What is GST, GST rates, GST Registration and the basics of GST Act, GST calculator. Lets start our topics one by one.

1. What is GST?

Firstly, full form of GST is Goods and Services Tax. The definition of GST is:-
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.

GST is levied under three models/components :- Central GST(CGST), State GST/Union Territory GST(SGST/UTGST), Integrated GST(IGST)

All the rules and regulations regsrding GST is framed by GST council.

In layman terms it can be said that a manufacturer has to pay tax(input tax credit) on Raw material purchased by business and have to collect tax on final goods sold.

Illustrative GST Calculator:-

Suppose a manufacturer buys raw material worth Rs. 100 taxable @ 15% and sells his output from the same RM for Rs 150 taxable @ 18%. In this case tax liability can be calculated as under:-

Liability= 150*18%= Rs.27

Input credit= 100*15%= Rs.15

Net GST liability= Rs27- Rs.15 = Rs.12

2. GST Registration:-

In present scenario GST registration has become a game of children, you can simply visit GST Registration to get started with process of GST registration. In order to give clearity i am stating GST Registration Procedure Step by Step guide :-

Step 1: Go to the GST Registration Portal

Step 2: Generate a TRN by Completing OTP Validation

Step 3: OTP Verification & TRN Generation

Step 4: TRN Generated
Step 5: Login with TRN

Step 6: Submit Business Information

Step 7: Submit Promoter Information

Step 8: Submit Authorised Signatory Information

Step 9: Principal Place of Business

Step 10: Additional Place of Business

Step 11: Details of Goods and Services

Step 12: Details of Bank Account

Step 13: Verification of Application

Step 14: ARN Generated

For detailed procedure i will be uploading a post soon, so stay tuned at The Tax Practitioners.

3. GST Rates:-

Illustrative table showing GST rates is given below:-

SL.no	List of Goods/Services	Changes in Tax Rate
1	Vegetables provisionally preserved but unsuitable for immediate consumption	5% to Nil
2	Vegetables cooked/uncooked via steamed, frozen or boiled (branded)	5% to Nil
3	Music Books	12% to Nil
4	Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of Tariff	5%
5	Natural cork	12% to 5%
6	Fly ash blocks	12% to 5%
7	Walking sticks	12% to 5%
8	Marble rubble	18% to 5%
9	Agglomerated cork	18% to 12%
10	Cork roughly squared or debugged	18% to 12%
11	Articles of Natural cork	18% to 12%
12	Movie Tickets < or = Rs 100	18% to 12%
13	Premium on Third party insurance on Vehicles	18% to 12%
14	Accessories for Handicapped Mobility Vehicles	28% to 5%
15	Power banks	28% to 18%
16	Movie Tickets > Rs 100	28% to 18%
17	Video game consoles, equipments used for Billiards and Snooker and other sport related items of HSN code 9504	28% to 18%
18	Retreated & used pneumatic Rubber Tyres	28% to 18%
19	Colour Television Sets & monitors up to “32 Inches”	28% to 18%
20	Digital & Video Camera recorders	28% to 18%
21	Pulleys, transmission shafts, cranks and gear boxes under HSN 8483	28% to 18%
22	Tax rate on Air travel of pilgrims reduced*	28% to 18%

4. GST Calculation:-

GST is calculated on by applying Gross amount after deducting discount i.e. Invoive value

For more details i will be uploading a detailed video on GST calculation stay tuned at The Tax Practitioners.

For latest GST News stay tuned on our blog.

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