Goods and Service Tax - GST
Goods and Service Tax - GST
GOODS AND SERVICE TAX (GST)What is GST?The GST is basically an indirect tax that brings most of the taxes imposed on most goods and service, on manufacture, sale and consumption of goods and services, under a single domain at the national level the earlier system, taxes were levied separately on goods and services. The GST is a consolidated tax based on a uniform rate of tax fixed for both goods and services and it is payable at the final point of consumption. At each stage of sale or purchase, in the supply chain, this tax is collected on value-added goods and services, through a tax credit mechanism.
GST Model and RatesA dual GST system has been implemented in India as proposed by the Empowered Committee underwhich the GST is divided into two parts:State Goods and Services Tax (SGST)Central Goods and Services Tax (CGST)
Both SGST and CGST are levied on the taxable value of a transaction. All goods and services, leaving aside a few, have been brought into the GST and there is no difference between goods and services. The GST system combines Central Excise Duty, Additional Excise Duty, Services Tax, State VAT or EntertainmentTax etc. under one banner.There see presently 5 slabs of GST rate, the lowest being o, and the highest 28%. The rates of GST on specific goods and services are fixed/modified from time to timely GST Council that comprises representatives of the States and the Centre.Presently, there are around 160 countries that have implemented the GST or VAT in some form or the other. France was the first country to introduce GST. The only other country with a dual GST is Canada.
How is GST applied ?GST is a consumption based tax/levy. It is based on the "Destination Principle". GST is applied on goods and services at the place where final/ actual conumption happens. GST is collected on value-added goods and services at each stage of sale on purchase iin the supply chain. GST paid on the procurement of goods and services can be set off against that payable on the supply of goods or services. The manufacturer, wholesaler or retailer will pay the applicable GST rate but will claim back through tax credit mechanism.
But, being the last person in the supply chain, the end consumer has to bear this tax and so, in many respects, GST is like a last-point retail tax. GST is going to be collected at point of sale.Differential treatment for alcohol, tobacco and petroleum products(1) Alcoholic liquor, for human consumption, has been excluded from the purview of GST. The definition of goods and services tax in the proposed clause (12A) to be inserted in Article 366 of the Constitution is "tax on the supply of goods or services or both (except tax on the supply of alcoholic liquor for human consumption)." The manufacture and sale of the product will continue to be states.(2) Tobacco and tobacco products will be subject to central excise duty in addition to GST. While not excluded from GST, it is retained in entry 84 of List I (union list) also.
(3) Petroleum products are excluded from GST for the present, and will continue to be taxed in the present mode - central excise duty on manufacture and VAT/CST on sale. However, the proposed Constitutional amendment requires the GST Council to fix the date by which these products wàubrought into the purview of GST. This is in clause (5) of the proposed Article 279A, Goods Services Tax Council (GSTC), inserted by the Constitution (101stAmendment) Act.
Advantages of GST(1) Speeds up economic union of India;
(2) Better compliance and revenue buoyancy;
(3) Replaces the cascading effect [tax on tax] created by existing indirect taxes;
(4) Tax incidence for consumers may fall;
(5) Lower transaction cost for final consumers;
(6) By merging all levies on goods and services into one, GST acquires a very simple and transparent character;
(7) Uniformity in tax regime with only one or two tax rates across the supply chain as against multi tax structure as of present;
(8) Efficiency in tax administration;
(9) May widen tax base;
(10) Increased tax collections due to wide coverage of goods and services; and(11) Improvement in cost competitiveness of goods and services in the international market.
List of Crucial Changes Occurred Due to GST
1. No More Hidden Taxes: With GST, people can be assured that the commodities have been taxed at a single tax bracket, split between the Centre and the State.
2.Check on price rise: Under the previous tax regime, producers had to pay taxes at every stage which was added to the final selling price. This was called cascading effect of taxes. Now. GST replaces cascading effect of taxes with input lax credit. Under the new tax regime, the tax paid for inputs is taken off taxes to be paid for the final product, or output. This way more people pay taxes instead of the consumer bearing the burden of taxes levied at every step of manufacturing.
3. Traders go digital: Traders will have to change the way they used to do business before the advent of GST. With the tax return filing process going digital, traders will have to upgrade to electronic means to keep up. Those who used to generate invoices digitally will have to change their IT systems to accommodate changes brought about by GST.4. Check-posts removed: With GST being a destination-based tax, border check-posts at state limits have become obsolete and were done away with. With no toll booths to cross, goods carriers are transporting their cargo swiftly between states. Cutting the delay in delivery of goods has helped save crores of rupees in lost time
5. Price change of essential commodities: No change was observed in the prices of essential commodities as they were kept in the zero percent tax bracket under GST. Luxury cars made in India saw a decline in their prices, though, as they were categorised in the lower tax bracket under GST.
Students / Parents Reviews [20]
Abhyas is good institution and a innovative institute also. It is a good platform of beginners.Due to Abhyas,he has got knoweledge about reasoning and confidence.My son has improved his vocabulary because of Abhyas.Teacher have very friendly atmosphere also.
Manish Kumar
10thMy experience with Abhyas academy is very good. I did not think that my every subject coming here will be so strong. The main thing is that the online tests had made me learn here more things.
Hiya Gupta
8thAbhyas institute is one of the best coaching institute in the vicinity of Ambala cantt.The institute provides good and quality education to the students.The teachers are well experienced and are very helpful in solving the problems. The major advantages of the institute is extra classes for weak...
Shreya Shrivastava
8thBeing a parent, I saw my daughter improvement in her studies by seeing a good result in all day to day compititive exam TMO, NSO, IEO etc and as well as studies. I have got a fruitful result from my daughter.
Prisha Gupta
8thIn terms of methodology I want to say that institute provides expert guidence and results oriented monitering supplements by requsite study material along with regular tests which help the students to improve their education skills.The techniques of providing education helps the students to asses...
Aman Kumar Shrivastava
10thThe experience was nice. I studied here for three years and saw a tremendous change in myself. I started liking subjects like English and SST which earlier I ran from. Extra knowledge gave me confidence to overcome competitive exams. One of the best institutes for secondary education.
Aman Kumar Shrivastava
10thAbhyas Methodology is very good. It is based on according to student and each child manages accordingly to its properly. Methodology has improved the abilities of students to shine them in future.
Manish Kumar
10thMy experience with Abhyas academy is very nice or it can be said wonderful. I have been studying here from seven class. I have been completing my journey of three years. I am tinking that I should join Abhyas Academy in tenth class as I am seeing much improvement in Maths and English
Hridey Preet
9thAbhyas academy is great place to learn. I have learnt a lot here they have finished my fear of not answering.It has created a habit of self studying in me.The teachers here are very supportive and helpful. Earlier my maths and science was good but now it has been much better than before.
Barkha Arora
10thThird consective year,my ward is in Abhyas with nice experience of admin and transport support.Educational standard of the institute recumbent at satisfactory level. One thing would live to bring in notice that last year study books was distributed after half of the session was over,though study ...
Ayan Ghosh
8thAbhyas is a complete education Institute. Here extreme care is taken by teacher with the help of regular exam. Extra classes also conducted by the institute, if the student is weak.
Om Umang
10thWe started with lot of hope that Abhyas will help in better understnding of complex topics of highers classes. we are not disappointed with the progress our child has made after attending Abhyas. Though need to mention that we expected a lot more. On a scale of 1-10, we would give may be 7.
Manya
8thWhen I have not joined Abhyas Academy, my skills of solving maths problems were not clear. But, after joining it, my skills have been developed and my concepts of science and SST are very well. I also came to know about other subjects such as vedic maths and reasoning.
Sharandeep Singh
7thMy experience with Abhyas is very good. I have learnt many things here like vedic maths and reasoning also. Teachers here first take our doubts and then there are assignments to verify our weak points.
Shivam Rana
7thIt was a good experience with Abhyas Academy. I even faced problems in starting but slowly and steadily overcomed. Especially reasoning classes helped me a lot.
Cheshta
10thAbhyas institute is one of the best coaching institute in the vicinity of Ambala Cantt area. The teachers of the institute are well experienced and very helpful in solving the problems of the students.The good thing of the institute is that it is providing extra classes for the students who are w...
Aman Kumar Shrivastava
10thA marvelous experience with Abhyas. I am glad to share that my ward has achieved more than enough at the Ambala ABHYAS centre. Years have passed on and more and more he has gained. May the centre flourish and develop day by day by the grace of God.
Archit Segal
7thOne of the best institutes to develope a child interest in studies.Provides SST and English knowledge also unlike other institutes. Teachers are co operative and friendly online tests andPPT develope practical knowledge also.
Aman Kumar Shrivastava
10thI have spent a wonderful time in Abhyas academy. It has made my reasoning more apt, English more stronger and Maths an interesting subject for me. It has given me a habbit of self studying
Yatharthi Sharma
10thIt was good as the experience because as we had come here we had been improved in a such envirnment created here.Extra is taught which is beneficial for future.
