Basics of GST, Goods and Services Tax, is a comprehensive indirect tax that was introduce in India on July 1, 2017, with the aim of simplifying the tax structure and eliminating multiple layers of taxation.
Here are some key things one should know about GST:
1.GST is a destination-based tax:
GST is a consumption-based tax that is levied at the point of consumption or sale of goods and services. It is applicable to all goods and services except for alcohol for human consumption and petroleum products.
2. GST has replaced multiple indirect taxes:
GST has replaced multiple indirect taxes such as excise duty, service tax, central sales tax, value-added tax (VAT), and others.
3.GST has four tax rates:
GST has four tax rates – 5%, 12%, 18%, and 28%. The rates are base on the type of goods or services being provide.
4.GST registration is mandatory for certain businesses:
Businesses whose annual turnover exceeds Rs. 40 Lakh (Rs. 20 Lakh for northeastern and hilly states) are require to register for GST.
5.GST returns need to be file regularly:
Registered businesses are require to file monthly or quarterly GST returns, depending on their turnover.
6.Input tax credit is allowed under GST:
Businesses can claim input tax credit on the GST paid on purchases of goods and services, which can be set off against the GST collected on sales.
7.GST compliance is important:
Non-compliance with GST regulations can result in penalties and fines.
Overall, Basics of GST has simplified the tax structure and reduce the burden of multiple indirect taxes on businesses and consumers.
To visit: https://www.gst.gov.in/
For further details access our website: https://vibrantfinserv.com