G. S. T.

G.S. T. - An Introduction to Goods and Service Taxes in India

n India, the VAT was levied in 2006 and the final logical conclusion of this indirect tax was to be in the form of Goods and Service Tax, hence the Finance Minister, Shri P. Chidambaram, in his budget speech in the year 2006, G.T.T. Referring to that, the only indirect tax in India will be levied from April 1, 2010, under which the central government will collect tax which will be divided between the Center and the States. But in our country there is a federal structure of governance and both the states and the Center have the right to impose indirect tax under which the state mainly, the VAT and the Center mainly impose the central excise duty, and the state, since the right to withdraw its tax Therefore, the proposal for single goods and service tax proposed by the Central Government was initially rejected by the states only. .After this, under a settlement between the states and the Center, the double G.S. The formula for implementing T. was developed by which the state and the center would be taxed separately on the same behavior of sales and service. Let's look and try to understand in simple and easy language how it will be "Goods and service tax" in India and whether it will be able to do this by the due date of the government announced by April 1, 2016 or will it still be waiting for it in India. Have to do.1. Does G.T. One is doubleG.T.T. The common perception about this is that it is a single tax and in place of all indirect taxes, now business and industry will have to pay only one tax and that is the GST. There is also the ideal form of which under which the central government has to collect all the same at the same place and then divide it between the center and the states. But as the above states have been written, the state did not want to give its right to impose its tax, hence there was a settlement between the states and the center, whereby the state and central will recover separately on the same behavior of sales and service which GST of states I.e. "SGST" and the Central Government's G.T.T. That means, "CGST" will be known as, apart from this, the states will also get the right to do the services along with the goods.

 Let's try to understand this through an example: -A merchant of Mumbai "A" sells a commodity to Mumbai's second merchant "B" for Rs. 10 lakhs and suppose that GST of the states. The rate is 12 percent and the center's G.T. If the rate is 14 percent then "A" in this transaction Rs 1.20 lakhs is available for SGST. And 1.40 lakh rupees for CGST As your buyer will recover from "B".Let us now take this behavior further and see that Mumbai's "B" now sells the commercial "S" of Mumbai or any other city in Maharashtra for Rs.10.50 lakhs, then it is worth 1.26 lakhs SG. S.T. And 1.47 lakhs CGST Will recover as.Here, keep in mind that "B" is already available in SGST. Buying his own goods has paid 1.20 lakh rupees and the CGST As per the payment of Rs 1.40 lakhs paid in the same manner and thus the input credit of "B" will be sent to SGST. Rs. 1.20 and CGST As of 1.40 lakh rupees, it will reduce the tax collected by the "tax" by itself.Thus "B" SGST (Rupees 1.26 lakh - 1.20 lakh) will deposit the payment of Rs. 6000.00 in the state treasury and in the same way, CGST. (Rs 1.47 lakh - Rs 1.40 lakh) will be credited to the treasury of Central Government Rs. 7000.00.In this tax, both goods and services will be included but on the same behavior as explained by the central and the state, both of them will do this, therefore, it is a double taxation of "goods and services tax" in India.2. G.T. And constitutional amendmentsG.T.T. The constitutional amendment has also been repeated for the year to be implemented in India and the Central Government has kept the constitutional amendment bill in this regard recently in the Lok Sabha. Let us see why it is necessary to complete the constitutional amendment and what the process will have to do for it.In our country, the states have the right to tax on the sale of goods, which they primarily use by using "weight" and in the same way the Central Government has the right to tax till the build up of the goods, which they primarily have Use as a fee. In addition, the Central Government has the right to tax on services.Note here that the center does not have the right to tax on the sale of goods and states do not have the right to impose taxes on services and to give this right and to remove other constraints in the way of GST For constitutional amendment is necessary.Let us now see how this Constitution amendment will be done, first it must be passed by both Houses of Parliament, for which at least half of the members of each member of the House are elected and two-thirds of those who use the franchise at that time. After this, it will have to take approval of the Legislative Assemblies of half the states of the entire country before sending it for President's signature. .The government can now keep this constitutional amendment bill from the Lok Sabha and after passing it from the Lok Sabha, it will be required to keep and pass in the Rajya Sabha and at least half of the state assemblies and in the Legislative Assemblies so you can now assume that all this It will not be easy and it will take time too.3. G.T. And weight in statesIn our country weights were applied in all states in 2005 and 2006. Now this weight has been given to GST. GST of states under I.e. SGST In converting it, the goods will be included along with the goods as well.In practice, all non-indigestible tax laws in the states will be sent to SGST. But now there is a dispute between the central and the states regarding the entry tax (entry tax) in which the states which were admitted in exchange for taxes and in exchange for taxing, and the state is giving its revenue to the local bodies is. Apart from this, the rates of tax, petroleum products and liqueurs are given to GST. Keeping out, and sending the states to G.T. The imposition of the impairment on imposed imposition is also the other point of dispute with the States and the Center.In our country, weights are now applicable in all the states, so understand from the procedural nature, then the State Governments will have GST. There will be no problem in implementing it but before that the Center and the States will have to solve their disputes completely.

 4. G.T. And central exciseCentral excise is a very large part of government revenue in India and it is an indirect tax which central government recovers. This tax object seems to be at the stage of construction. This tax "CGST" means Central GST. Will be included in.But keep in mind that the Central Excise Duty seems to be in the form of construction only when the CGST The objective of the sale of the item is to reach the stage, therefore, through constitutional amendment, it will be given first power to the Central Government, so that it can be taxed on the sale of the goods.5. The lowest amount from which GST To feelThe lowest amount of sale or service from where GST The amount is to be taxed by the Central and the States, and according to the news so far, the amount will be Rs 10.00 lakh only. This amount is called "threshold limit". Now, in most of the states this limit is Rs 10.00 lakh for the weights but in some states the limit is still 5.00 lakh rupees. This limit for service tax is also 10 lakh rupees for small service providers at this time.But the real problem is with Central excise duty, where this limit is Rs 150 lakh but the CGST Under this limit, now even 10 lakh rupees is proposed.New tax on GST instead of Central excise duty Under CGST It is being said in the name of it that the center will become more financially financially than the states. One of the biggest reasons is that it is "threshold limit" and secondly it is the fact that the center is now in the state of construction of the goods. Instead of direct tax at the place of sale, the CGST Will recover.6. G.T. And Central Sales Tax (CST)When VAT was introduced in the states in 2006, then Central Sales Tax (CST) Was considered the biggest obstacle and it was promised that by decreasing this rate from one percent per annum, this tax would eventually be abolished, but this promise was not completed and even today the rate is maintained at two percent and Simultaneously, the business and industry world is troubled by the problem of the C-Form collected on Central Sales Tax.Let's first understand what the Central Sales Tax is, why its name usually indicates that this is a tax levied by the Central Government, whereas the fact is that it is a trade between the two states by the selling state. But the tax collected is taxable and the developed states of the country which we can call the manufacturing state also collect a lot of revenue from this tax.G.T.T. There is a tax on the last consumer at one end; There will be no space for Central Sales Tax and this will have a negative impact on the revenue of the developed States, ie the Sales States, which also includes the Center and the States to finalize GST. Will have to think when putting.To monitor the trade between the two states, an IGST The model has also been prepared and presented, which we are discussing, but keep in mind that it is a new tax (SGST and CGST) in place of Central Sales Tax. In addition to the third tax), but there is a mechanism through which the trade between the two states can be monitored and it can be ensured that the tax is to the state where the final consumer resides.7. G.T. Of IGST The modelG.T.T. Under this, a mechanism will be developed with the help of Information Technology, which will monitor the inter-state trade of goods and services between the two states and also ensure that the "tax" is getting the state of the ultimate consumer. It has already been mentioned above that there is no new tax to replace this Central Sales Tax, but this "IGST" is also going to be a stepping stone for industry and trade.Let's see that this IGST How the model will work: -(a). The dealer who sells during inter-business trade, from his buyer, will be able to buy the IGST. As a tax collector and deposited in the Central Government treasury. This tax rate is S.G.ST. And CGST Rate will be formed in between For example, say SGST Rate is 12 percent and CGST Rate is 14 percent, then IGST , The tax collected will be deposited in the Central Government treasury at the rate of 26 percent.

 (I). Your IGST When depositing the seller, the SGST has been paid on the purchase of this goods, which he has sold during inter-state sale. And CGST The input will take the credit.(Ii). State of the Seller In relation to this merchandise sold by the seller, the SGST The amount of credit taken will be transferred to the central government treasury.(Iii). When buying a buyer during interpenetrative sale, it will sell its goods whenever its SGST And CGST The amount of IGST paid by me The amount will be reduced by SGST And CGST Will pay as(Iv). The amount of input credit your SGST At the time of repaying the consumer of the consumer state, IGST The Center will transfer the amount so much that the consumer will transfer to the state account.ISA Type SGST The entire revenue received in the form of inter-state trade will be available to the consumer only.8. G.T. And tax rateG.T.T. What will be the rate of tax during this time is also a big issue as the government wants that it and the states have GST During the time of doing more tax or at least as much as you can apply during the current indirect tax system, such as VAT and Central Excise etc. and it is very difficult to get such a rate as the GS T. Tax free items, G.T. Apart from this, it is still to decide the goods, etc. Besides, the government will take any rate fixing which will be more for the industry, business and consumer but after this, the government will get the desired revenue which is expected of him. There is no such requirement.According to the news coming at this time, SGST Rate of 12 percent and CGST The rate of 14 percent is being considered but here it should be kept in mind that anyone who has the rate will remain disputed and even after all the disputes, the government can get desired revenue. It is not mandatory.9. G.T. And petroleum productsPetroleum Products GST And these substances can be done just as they are taxed by keeping them out of the weights. You must know that currently Petroleum products are out of GST and due to the reasons these substances are kept out of the weights, for these reasons, they have GST. It can be excluded from its full potential.Keep in mind that both the Central and the State do a large portion of their revenues with central excise and weights that apply on these substances, and this is a very pleasant place for them, both of whom do not want to leave and in such a case that the industry and The business will not get input of tax on petroleum products and it will not be available in GST. The ideal form will be more messy.Ads by ZINCNow it is being promoted that state petroleum products have been given GST I want to keep it out but its reality will be known only when GST Lastly, it will be applicable and it will come to know that Petroleum Products GST Are kept out of or GST G.T.T. Attempts are made to maintain the basic nature ofThe same problem is that LICER also has GST It is also related to the demand of states to keep out of the state.10. Why the Center GST Eager to applyGSAT is more curious than center states It is said to be applied and ready to appear, so let's see if there is any truth in it or not.See G.T. During this time, the indirect taxes will be recovered more than what is recovering, because at this time Central Excise seems to be at the limit of more than Rs. 150.00 lakh but the CGST Now it will start charging only upwards of 10.00 lakhs, in this way, the difference of Rs 140.00 lakhs will be given to the dealers in a bigger quantity of CGST. Will be within the scope of

Apart from this, Central Excise seems to be the only way to build the goods, while CGS.T. The sale will last till the last place and whether the consumer remains in any state, then the CGS.T. And the revenue of the center will also increase.But you can not say about the states, because at one time, the Central Excise's "Cascading Effect" (tax on taxes) G.T. Will also result in reduction in revenue of the states. Central sales tax will be terminated, due to this, the revenue of the producer states will be reduced and even after the completion of entry tax, some states may have problems. Apart from this, LICR and Petroleum products have been given GST G.T.T. The final decision is still on the demand of states to keep out of the situation.

 Not all States want financially more strong centers than states, so there is no need for GST from the states. There is no curiosity about the center as it is from11. What is the main point of contention with the states stillCenter's dispute with the states GST The debate started in the initial stage, which culminated in a conservative double GST. But still the Center and the State are fully GST in India. While not fully agreeing about the final form of imposition, while the Center and the States are not happy with the GST Talking about this year, more than eight years have passed this year.Ideally, how many big claims do we make? Regarding the current Indian political and economics and the rights of the states, keeping in mind the problems of the states without completely redressing suspicions and doubts. If implemented, its success will not only be unsure but also questionable.12. G.T. And trade and industryG.T.T. Since 2006, there has been a debate between the Center and the States and no special significance has been given about the opinions and expectations of business and industry regarding this at the government level. The biggest reason for this is that till now the state and the Center are not unanimous about the final form of this tax, then they do not want to get involved in even more confusion and controversy by taking the opinion of trade and industry.But the biggest question is that when doing business and industry is to be done, it will be appropriate to take the opinion of business and industry before deciding the final form of tax otherwise, GST will be suitable. Success is questionable.From the many areas of trade and industry, the statement that GST is Sometimes it comes with most of them; Based on the opinion that G.T.T. There is a single tax while GST Both the centers and states have "repeat" imposed on both sides of the same behavior. For business and industry, from now on, G.T.T. It is necessary to study about G.T. Could create an opinion about industry and business, which ultimately led to G.T.T. Before introduction, the government could present it.13. What is GST? Will be effective from 2016For the first time in the year 2006, G.T.T. When it was mentioned then it was said that it will be implemented on April 1, 2010 in all India since then, the most recent tax system has remained a subject of controversy between the states and the center and has been the subject of controversy since the beginning. .S.T. It has been circulated that this tax system will not only increase revenue but also benefit consumers. So both of these facts, the increase in revenue and the consumers also get the cheapest item, there is an opposite fact, but still we believe in it, then the question arises, then GST. Why is delay in implementing?G.T.T. There is not only one tax in India, it is also a political battle between the Center and the states' rights to tax. And G.T.T. In the form of double taxation with the State Center to protect the "taxing power of states", GST Has already accepted the proposal but still GST But the states have their own apprehensions on many issues.The constitutional amendment is still only kept in the Lok Sabha and it is yet to be passed and after this it is mandatory to pass it to the Rajya Sabha and at least half the number of the total states.Apart from this, it is also a matter of fact that if more than half the state of the country approves the constitution amendment with both Houses of Parliament, then the amendment of the constitution will be passed but those who disagree with the GST will not be allowed to do so. How to prepare will be a questionable question as to why GET like weight So all the time in India can not be applied at different times and it will have to be put together all over the countryTherefore, one year is very short, and for this reason we can say that if everything is practically okay then on April 1, 2016, we can say on 1 April 2017 that GST The dates of the implementation can be.