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    Module 8 Goods and Services Tax (GST)

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    lavyasutar

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    © All Rights Reserved
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    Module 8 Goods and Services Tax (GST)

    Uploaded by

    lavyasutar
    1 views6 pages

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    1 views6 pages

    Module 8 Goods and Services Tax (GST)

    Uploaded by

    lavyasutar

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    2018

    MODULE: 8
    Goods and Services Tax (GST)

    TELECENTRE ENTREPRENEUR COURSE

    CSC e-Governance Services India Limited 3rd Floor, Electronics Niketan,


    6 CGO Complex Lodhi Road, New Delhi – 110003
    MODULE 8 Goods and Services Tax (GST)

    Structure of the Unit

    1.1 About Goods and Services Tax (GST)


    1.2 Advantages of GST
    1.3 Tax Laws before GST
    1.4 GST Registration and who should get registered under GST
    1.5 GST Registration Fees GST

    1.1 About Goods and Services Tax (GST)

    Goods and Services Tax is an indirect tax levied in India on the sale of goods and services.
    Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%, 18%
    and 28%. Petroleum products and alcoholic drinks are taxed separately by the individual
    state governments. There is a special rate of 0.25% on rough precious and semi-precious
    stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on
    few items like aerated drinks, luxury cars and tobacco products.

    The tax came into effect from July 1, 2017 through the implementation of one hundred and
    first amendments by the Government of India. The tax replaced existing multiple cascading
    taxes levied by the central and state governments. The tax rates, rules and regulations are
    governed by the Goods and Services Tax Council which comprises finance ministers of
    centre and all the states. GST simplified a slew of indirect taxes with a unified tax and is
    therefore expected to dramatically reshape the country's 2 trillion dollar economy. With the
    implementation of Goods and Services Tax (GST) from 1st July 2017, all the Taxpayers are
    expected to file their periodic returns. CSC e-Governance Services India Limited has rolled
    out GST Return filing service through its network of more than 2.5 Lakhs Common Services
    Centres (CSC).

    CSC SPV has built a filing application on Digital Seva Portal and a support function has been
    created to help the Village Level Entrepreneur (VLE) operating these CSCs across India in
    filing periodic returns of the Taxpayers. VLEs can deregister for GST number if the turnover
    is less than 20 lakhs as the notification from Government of India specifies that the

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    ecommerce operators having an aggregate turnover of less than Rs 20 lakhs/10lakhs
    (Special states) are not required to register under GST.

    1.2 Advantages of GST

    GST will mainly remove the Cascading effect on the sale of goods and services. Removal of
    cascading effect will directly impact the cost of goods. The cost of goods should decrease
    since tax on tax is eliminated in the GST regime. GST is also mainly technologically driven. All
    activities like registration return filing, application for refund and response to notice needs
    to be done online on the GST Portal. This will speed up the processes.

    Components of GST

    There are 3 taxes applicable under GST:

     CGST: Collected by the Central Government on an intra-state sale


     SGST: Collected by the State Government on an intra-state sale
     IGST: Collected by the Central Government for inter-state sale

    1.3 Tax Laws before GST

    In the pre-GST regime, there were many indirect taxes levied by both state and center.
    States mainly collected taxes in the form of Value Added Tax (VAT). Every state had a
    different set of rules and regulations.

    Interstate sale of goods was taxed by the Center. CST (Central State Tax) was applicable in
    case of interstate sale of goods. Other than above there were many indirect taxes like
    entertainment tax, octroi and local tax that was levied by state and center. This lead to a lot
    of overlapping of taxes levied by both state and center.

    For example, when goods were manufactured and sold Excise Duty charged by the center
    was charged by the center. Over and above Excise Duty, VAT was also charged by the State.
    This lead to a tax on tax also known as cascading effect of taxes.

    The following is the list of indirect taxes in the pre-GST regime:

     Central Excise Duty


     Duties of Excise
     Additional Duties of Excise

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     Additional Duties of Customs
     Special Additional Duty of Customs
     Cess
     State VAT
     Central Sales Tax
     Purchase Tax
     Luxury Tax
     Entertainment Tax
     Entry Tax
     Taxes on advertisements
     Taxes on lotteries, betting, and gambling

    1.4 GST Registration and who should get registered under GST?

    Any business whose turnover exceeds the threshold limit of Rs. 20 lakhs (Rs 10 lakhs
    for North Eastern and hill states) will have to register under GST. Businesses registered
    under any of the pre-GST laws: VAT, Excise/Service Tax have to register under GST by
    default. Apart from the normal taxpayer (as defined above), there are few special cases
    (as explained in section 3) that have to register for GST irrespective of their turnover.

    Documents/details required to register under GST

    PAN is mandatory to apply for GST registration (except in case of non-resident).


    The document/details required to register for GST are:

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    1.5 GST Registration Fees GST

    Businesses can register for GST and obtain GSTIN free of cost.
    However, GST Registration is a tedious 11 step process which involves submission of many
    business details and scanned documents.
    You can opt for Clear Tax Goods and Services Tax (GST) Registration services where a GST
    Expert will assist you end to end with GST Registration.

    Penalty for not registering under GST?

    An offender not paying tax or making short payments (genuine errors) has to pay a penalty
    of 10% of the tax amount due subject to a minimum of Rs.10, 000. The penalty will at 100%
    of the tax amount due when the offender has deliberately evaded paying taxes

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