Sunday, September 6, 2020

meaning of Goods and Service Tax,Dual GST for supply of goods and services within state, Authentication of Aadhaar required in GST Registration,Outcome of Gst with abolition of other duties and taxes, chech post Abolished

        Goods and services Tax Act, 2017

Let understand the concept and meaning of Goods and Service Tax act

What is Goods and Services Tax ?

Goods and Services Tax implies Tax on supply of both Goods and Services except alcoholic liquor for human utilization [ Article 366(12A) of constitution of India embedded w.e.f. 16-9-2016].

Note that the word utilized is Supply and not Sale. Accordingly, stock transfer, branch transfer will likewise get covered under GST net. 

GST will be payable on free supplies made to related people. GST won't be payable to unconditional presents and free samples to unrelated individual, but input tax credit in regard of such products should be reversed. 

Inter-state transfer and Stock transfer will cover under IGST. 

For stock transfers or branch move inside the state, SGST and CGST will be payable just where the available people has more than one GST registration inside the state. In the event that there is single enrollment inside State, 'Bill of Supply' (challan) will be adequate.

In India Goods and Service Tax were enforced on 1st of July 2017.

It is a single gateway for indirect tax regime, worldwide entrance into GST let us to go with them, in that situation no ways to continue with old sales tax law, therefore we have to the challenges come across our ways.

Goods and Service Tax Act, 2017 are broadly classified under four Head :

CGST: Central Goods and service Tax

SGST: State Goods and Service Tax

UTGST: Union Territory Goods and Service Tax

IGST: Integrated Goods and service tax

Dual GST for supply of goods and services within state.

There will be double GST – state GST (SGST) and Central GST (CGST) on supply of Goods and Services inside the state [Article 246A of constitution of India embedded w.e.f. 16-9-2016] 

Territorial Waters(for example 12 nautical miles inside the sea) will be the part of state as far as GST is concerned. 

SGST will likewise apply in Union Territories having Legislature. These are – Delhi and puducherry. Both CGST and SGST will be applicable within the state.

Authentication of Aadhaar required in GST Registration

New Registration under GST will be Aadhaar number based. The validation will be done on basis of Aadhaar number, as prescribed under section 25(6B) of CGST Act. 

Existing registered person will likewise need to get confirmed through Aadhaar number or other technique, inside determined time-segment 25(6A) of CGST Act. If not done, registration will be cancelled. 

In the situation of Partnership Firm, Company, Association firm, Organization, Trust, HUF, AOP or BOI, the validation will be by confirmation of Aadhaar number of Partner, Director, trustee, approved delegate, managing Head Member of Karta of HUF-section 25(6C) of CGST Act. 

If a Partner, Director, trustee, approved delegate, managing Head Member of Karta of HUF doesn't have Aadhaar, verification will be by other strategy in way as might be indicated. 

Government can exempt an individual or class of person or any State or Union Territory or part thereof, on suggestion of GST Council-segment 25(6D) of CGST Act.

Outcome of Gst with abolition of other duties, taxes and Cesses

Prior Central Excise Duty(aside from of Petroleum), Service Tax, Duties of Excise on clinical and latrine arrangements have been subsumed in CGST and SGST w.e.f. 1-7-2017. 

State Vat, Central Sales Tax, Octroi, Entry Tax, Entertainment Tax, Luxury Tax, Tax on lotteries, wagering and betting have been subsumed in SGST [Of course, CGST will likewise be payable]

CVD and Special CVD on imported merchandise has been supplanted by IGST w.e.f. 1-7-2017. Input Tax Credit of this IGST is accessible. 

Basic Custom duty on import merchandise (which is commonly 10%) is proceeding after 1-7-2017. Stamp obligations, Tolls and Motor vehicle charges are additionally proceeding.

Including the above following Cesses have been abolished like Education Cess, Iron ores, Mines, SAHE Cess, Mica, Salt, Textile, Limestone, Tobacco, Manganese Ores Mines, Welfare of Cine workers, Cement, Strawboard, R&D Cess, Rubber Cess, etc.

Check Post at Borders of various States  have been abolished. For easy functionality E-way bill have been introduced, to stop the fraud and robbery.

No comments:

Post a Comment